Q&A · ESMA
Multilateral and bilateral systems - Systematic internalisers - “risk-facing activity”
Answered
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An EU branch of a third-country firm acting as a systematic internaliser must carry real risk on its own book: no riskless back-to-back hedging of each client trade, its own control of quotes with EU-based traders, a dedicated commercial policy and client documentation, and its own MIC for reporting.
Details
| Reference | ESMA_QA_1498 |
|---|---|
| Issuer | ESMA |
| Published | 1 Apr 2019 |
| Answered | 1 Apr 2019 |
| Submitted | 1 Apr 2019 |
| ESMA topics | Multilateral and bilateral systems |
| Earlier Q&A document | ESMA 70-872942901-38 MiFID II MiFIR market structures Q&A, Q&A 5.31 |
Provisions it relates to
- Article 4 MiFID II · DefinitionsInferred · 80%
- MiFID II (whole act)Explicit reference