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consolidation http://publications.europa.eu/resource/celex/02004L0039-20180103.ENG 02004L0039-20180103.ENG celex <VALUE>Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004 on markets in financial instruments amending Council Directives 85/611/EEC and 93/6/EEC and Directive 2000/12/EC of the European Parliament and of the Council and repealing Council Directive 93/22/EEC </VALUE> 2019-04-17T01:17:20.294+02:00 2019 04 17 http://publications.europa.eu/resource/authority/language/ENG ENG language ENG ENG English English eng 2018-02-08T16:16:00.472+01:00 2018 02 08 Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004 on markets in financial instruments amending Council Directives 85/611/EEC and 93/6/EEC and Directive 2000/12/EC of the European Parliament and of the Council and repealing Council Directive 93/22/EEC en <VALUE>CELEX1</VALUE> Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004 on markets in financial instruments amending Council Directives 85/611/EEC and 93/6/EEC and Directive 2000/12/EC of the European Parliament and of the Council and repealing Council Directive 93/22/EEC (repealed)

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TITLE I DEFINITIONS AND SCOPE Scope Article 1 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Exemptions Article 2 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Optional exemptions Article 3 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Definitions Article 4 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . TITLE II AUTHORISATION AND OPERATING CONDITIONS FOR INVESTMENT FIRMS CHAPTER I CONDITIONS AND PROCEDURES FOR AUTHORISATION Requirement for authorisation Article 5 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Scope of authorisation Article 6 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Procedures for granting and refusing requests for authorisation Article 7 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Withdrawal of authorisations Article 8 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Persons who effectively direct the business Article 9 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Shareholders and members with qualifying holdings Article 10 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Assessment period Article 10a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Assessment Article 10b . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Membership of an authorised Investor Compensation Scheme Article 11 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Initial capital endowment Article 12 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Organisational requirements Article 13 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Trading process and finalisation of transactions in an MTF Article 14 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Relations with third countries Article 15 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CHAPTER II OPERATING CONDITIONS FOR INVESTMENT FIRMS Section 1 General provisions Regular review of conditions for initial authorisation Article 16 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . General obligation in respect of on-going supervision Article 17 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Conflicts of interest Article 18 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Section 2 Provisions to ensure investor protection Conduct of business obligations when providing investment services to clients Article 19 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Provision of services through the medium of another investment firm Article 20 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Obligation to execute orders on terms most favourable to the client Article 21 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Client order handling rules Article 22 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Obligations of investment firms when appointing tied agents Article 23 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Transactions executed with eligible counterparties Article 24 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Section 3 Market transparency and integrity Obligation to uphold integrity of markets, report transactions and maintain records Article 25 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Monitoring of compliance with the rules of the MTF and with other legal obligations Article 26 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Obligation for investment firms to make public firm quotes Article 27 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Post-trade disclosure by investment firms Article 28 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Pre-trade transparency requirements for MTFs Article 29 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Post-trade transparency requirements for MTFs Article 30 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CHAPTER III RIGHTS OF INVESTMENT FIRMS Freedom to provide investment services and activities Article 31 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Establishment of a branch Article 32 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Access to regulated markets Article 33 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Access to central counterparty, clearing and settlement facilities and right to designate settlement system Article 34 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Provisions regarding central counterparty, clearing and settlement arrangements in respect of MTFs Article 35 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . TITLE III REGULATED MARKETS Authorisation and applicable law Article 36 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Requirements for the management of the regulated market Article 37 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Requirements relating to persons exercising significant influence over the management of the regulated market Article 38 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Organisational requirements Article 39 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Admission of financial instruments to trading Article 40 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Suspension and removal of instruments from trading Article 41 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Access to the regulated market Article 42 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Monitoring of compliance with the rules of the regulated market and with other legal obligations Article 43 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Pre-trade transparency requirements for regulated markets Article 44 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Post-trade transparency requirements for regulated markets Article 45 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Provisions regarding central counterparty and clearing and settlement arrangements Article 46 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . List of regulated markets Article 47 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . TITLE IV COMPETENT AUTHORITIES CHAPTER I DESIGNATION, POWERS AND REDRESS PROCEDURES Designation of competent authorities Article 48 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cooperation between authorities in the same Member State Article 49 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Powers to be made available to competent authorities Article 50 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Administrative sanctions Article 51 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Right of appeal Article 52 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Extra-judicial mechanism for investors' complaints Article 53 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Professional secrecy Article 54 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Relations with auditors Article 55 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CHAPTER II COOPERATION BETWEEN THE COMPETENT AUTHORITIES OF THE MEMBER STATES AND WITH ESMA Obligation to cooperate Article 56 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cooperation in supervisory activities, on-the-spot verifications or in investigations Article 57 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Exchange of information Article 58 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Binding mediation Article 58a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Refusal to cooperate Article 59 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Inter-authority consultation prior to authorisation Article 60 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Powers for host Member States Article 61 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Precautionary measures to be taken by host Member States Article 62 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Cooperation and exchange of information with ESMA Article 62a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . CHAPTER III COOPERATION WITH THIRD COUNTRIES Exchange of information with third countries Article 63 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . TITLE V FINAL PROVISIONS Committee procedure Article 64 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sunset clause Article 64a . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Reports and review Article 65 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Amendment of Directive 85/611/EEC Article 66 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Amendment of Directive 93/6/EEC Article 67 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Amendment of Directive 2000/12/EC Article 68 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Repeal of Directive 93/22/EEC Article 69 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Transposition Article 70 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Transitional provisions Article 71 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Entry into force Article 72 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Addressees Article 73 . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ANNEX I LIST OF SERVICES AND ACTIVITIES AND FINANCIAL INSTRUMENTS Section A Investment services and activities (1)

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(2)

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(3)

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(4)

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Section B Ancillary services (1)

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(2)

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(3)

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(4)

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(5)

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(6)

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(7)

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Section C Financial Instruments (1)

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(2)

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(6)

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(7)

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(9)

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(10)

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ANNEX II PROFESSIONAL CLIENTS FOR THE PURPOSE OF THIS DIRECTIVE

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I. Categories of client who are considered to be professionals

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II. Clients who may be treated as professionals on request II.1. Identification criteria

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II.2. Procedure

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Repealed by Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014 on markets in financial instruments and amending Directive 2002/92/EC and Directive 2011/61/EU (recast) (Text with EEA relevance).