EU · MiFIR · TITLE VII SUPERVISORY MEASURES ON PRODUCT INTERVENTION AND POSITIONS · CHAPTER 1 Product monitoring and intervention
Article 39a MiFIRProhibition of receiving payment for order flow
Bans investment firms acting for retail or elective professional clients from receiving payment for order flow, meaning any fee, commission or non-monetary benefit from a third party for executing or routing client orders to a particular venue; venue fee rebates allowed under a public tariff are permitted if they exclusively benefit the client. Member States where the practice existed before 28 March 2024 could exempt domestic business until 30 June 2026.
Amendments and application dates
| Amending act | Change | Applies from |
|---|---|---|
| Regulation (EU) 2024/791 | Text inserted; Provision inserted | 28 Mar 2024 |
Level 3: ESMA Q&As, guidelines and opinions
- Q&AAnsweredESMA rulebook
AI summaryIn a Commission answer, investment firms may use rebates and discounts on execution venues' transaction fees to lower client fees under Article 39a MiFIR only if they can show the rebate is permitted under the venue's approved public tariff, exclusively benefits the client and gives the firm no monetary benefit.
- Q&AAnsweredESMA rulebookESMA_QA_2558: Payment for order flow (PFOF) prohibition and client instructions for order executions
AI summaryIn a Commission answer, the ban on payment for order flow in Article 39a MiFIR applies even where the client specifically instructs the firm to execute on a particular venue.
- Q&AAnsweredESMA rulebook
AI summaryIn a Commission answer, the ban on receiving payment for order flow in Article 39a MiFIR applies to OTC execution as well as to trades on trading venues, given MiFIR's investor protection and best-execution aims and the broad definition of execution venue.
- Q&AAnsweredESMA rulebook
AI summaryIn a Commission answer, rebates or discounts on venue transaction fees fall outside the payment for order flow ban in Article 39a MiFIR only if permitted under the venue's approved public tariff, exclusively benefit the client, give no monetary benefit to the firm and comply with the fee-structure rules in Delegated Regulation 2017/573.
Commentary
No law-firm commentary is linked to this provision yet.
219 more documents relate to MiFIR as a whole without naming an article.
UK counterpart
- No UK counterpartExplicit reference
Inserted in the EU by Regulation (EU) 2024/791 (from 28 Mar 2024), after exit.
Version history
- From 28 Mar 2024
Each entry is a consolidated version of the act on EUR-Lex in which this provision appears. The text itself is on the official site.