Commission Delegated Regulation (EU) 2017/565of 25 April 2016supplementing Directive 2014/65/EU of the European Parliament and of the Council as regards organisational requirements and operating conditions for investment firms and defined terms for the purposes of that Directive(Text with EEA relevance) (revoked)
CHAPTER I
SCOPE AND DEFINITIONS
Article A1
Application
Article 1
Subject-matter and scope
Article 2
Definitions
Article 3
Conditions applying to the provision of information
Article 4
Provision of investment service in an incidental manner ...
Article 5
Wholesale energy products that must be physically settled ...
Article 6
Energy derivative contracts relating to oil and coal and wholesale energy products ...
Article 7
Other derivative financial instruments ...
Article 8
Derivatives under paragraph 10 of Part 1 of Schedule 2 to the Regulated Activities Order ...
Article 9
Investment advice ...
Article 10
Characteristics of other derivative contracts relating to currencies
Article 11
Money-market instruments ...
Article 12
Systematic internalisers for shares, depositary receipts, ETFs, certificates and other similar financial instruments ...
Article 13
Systematic internalisers for bonds ...
Article 14
Systematic internalisers for structured finance products ...
Article 15
Systematic internalisers for derivatives ...
Article 16
Systematic internalisers for emission allowances ...
Article 16ZA
Transitional period: data for calculations
Article 16a
Participation in matching arrangements
Article 17
Relevant assessment periods ...
Article 18
Algorithmic trading ...
Article 19
High frequency algorithmic trading technique ...
Article 20
Direct electronic access ...
CHAPTER II
ORGANISATIONAL REQUIREMENTS
SECTION 1
Organisation
Article 21
General organisational requirements ...
Article 22
Compliance ...
Article 23
Risk management ...
Article 24
Internal audit ...
Article 25
Responsibility of senior management ...
Article 26
Complaints handling ...
Article 27
Remuneration policies and practices ...
Article 28
Scope of personal transactions ...
Article 29
Personal transactions ...
SECTION 2
Outsourcing
Article 30
Scope of critical and important operational functions ...
Article 31
Outsourcing critical or important operational functions ...
Article 32
Service providers located in third countries ...
SECTION 3
Conflicts of interest
Article 33
Conflicts of interest potentially detrimental to a client ...
Article 34
Conflicts of interest policy ...
Article 35
Record of services or activities giving rise to detrimental conflict of interest ...
Article 36
Investment research and marketing communications ...
Article 37
Additional organisational requirements in relation to investment research or marketing communications ...
Article 38
Additional general requirements in relation to underwriting or placing ...
Article 39
Additional requirements in relation to pricing of offerings in relation to issuance of financial instruments ...
Article 40
Additional requirements in relation to placing ...
Article 41
Additional requirements in relation to advice, distribution and self-placement ...
Article 42
Additional requirements in relation to lending or provision of credit in the context of underwriting or placement ...
Article 43
Record keeping in relation to underwriting or placing ...
CHAPTER III
OPERATING CONDITIONS FOR INVESTMENT FIRMS
SECTION 1
Information to clients and potential clients
Article 44
Fair, clear and not misleading information requirements ...
Article 45
Information concerning client categorisation ...
Article 46
General requirements for information to clients ...
Article 47
Information about the investment firm and its services for clients and potential clients ...
Article 48
Information about financial instruments ...
Article 49
Information concerning safeguarding of client financial instruments or client funds ...
Article 50
Information on costs and associated charges ...
Article 51
Information provided in relation to units in collective investment undertakings or PRIIPs ...
SECTION 2
Investment advice
Article 52
Information about investment advice ...
Article 53
Investment advice on an independent basis ...
SECTION 3
Assessment of suitability and appropriateness
Article 54
Assessment of suitability and suitability reports ...
Article 55
Provisions common to the assessment of suitability or appropriateness ...
Article 56
Assessment of appropriateness and related record-keeping obligations ...
Article 57
Provision of services in non-complex instruments ...
Article 58
Retail and Professional Client agreements ...
SECTION 4
Reporting to clients
Article 59
Reporting obligations in respect of execution of orders other than for portfolio management ...
Article 60
Reporting obligations in respect of portfolio management ...
Article 61
Reporting obligations in respect of eligible counterparties ...
Article 62
Additional reporting obligations for portfolio management or contingent liability transactions ...
Article 63
Statements of client financial instruments or client funds ...
SECTION 5
Best execution
Article 64
Best execution criteria ...
Article 65
Duty of investment firms carrying out portfolio management and reception and transmission of orders to act in the best interests of the client ...
Article 66
Execution policy ...
SECTION 6
Client order handling
Article 67
General principles ...
Article 68
Aggregation and allocation of orders ...
Article 69
Aggregation and allocation of transactions for own account ...
Article 70
Prompt fair and expeditious execution of client orders and publication of unexecuted client limit orders for shares traded on a trading venue ...
SECTION 7
Eligible counterparties
Article 71
Eligible counterparties ...
SECTION 8
Record-keeping
Article 72
Retention of records ...
Article 73
Record keeping of rights and obligations of the investment firm and the client ...
Article 74
Record keeping of client orders and decision to deal ...
Article 75
Record keeping of transactions and order processing ...
Article 76
Recording of telephone conversations or electronic communications ...
SECTION 9
SME growth markets
Article 77
Qualification as an SME ...
Article 78
Registration as an SME growth market ...
Article 79
Deregistration as an SME growth market ...
CHAPTER IV
OPERATING OBLIGATIONS FOR TRADING VENUES
Article 80
Circumstances constituting significant damage to investors' interests and the orderly functioning of the market ...
Article 81
Circumstances where significant infringements of the rules of a trading venue or disorderly trading conditions or system disruptions in relation to a financial instrument may be assumed ...
Article 82
Circumstances where a conduct indicating behaviour that is prohibited under Regulation (EU) No 596/2014 may be assumed ...
CHAPTER V
POSITION REPORTING IN COMMODITY DERIVATIVES
Article 83
Position reporting ...
CHAPTER VI
DATA PROVISION OBLIGATIONS FOR DATA REPORTING SERVICE PROVIDERS
Article 84
Obligation to provide market data on a reasonable commercial basis ...
Article 85
Provision of market data on the basis of cost ...
Article 86
Obligation to provide market data on a non-discriminatory basis ...
Article 87
Per user fees ...
Article 88
Unbundling and disaggregating market data ...
Article 89
Transparency obligation ...
CHAPTER VII
COMPETENT AUTHORITIES AND FINAL PROVISIONS
Article 90
Determination of the substantial importance of the operations of a trading venue in a host Member State(Article 79(2) of Directive 2014/65/EU)
CHAPTER VIII
FINAL PROVISIONS
Article 91
Entry into force and application
ANNEX I
Record-keeping
Minimum list of records to be kept by investment firms...
ANNEX II
Costs and charges
Identified costs that should form part of the costs to...
ANNEX III
Requirement for operators of trading venues to immediately inform their national competent authority
SECTION A
Signals that may indicate significant infringements of the rules of...
Significant infringements of the rules of a trading venue
1.
Market participants infringe rules of the trading venue which aim...
2.
A trading venue considers that an infringement is of sufficient...
Disorderly trading conditions
3.
The price discovery process is interfered with over a significant...
4.
The capacities of the trading systems are reached or exceeded;...
5.
Market makers/liquidity providers repeatedly claim mis-trades; or
6.
Breakdown or failure of critical mechanisms under paragraphs 3 to...
System disruptions
7.
Any major malfunction or breakdown of the system for market...
8.
Any major malfunction or breakdown of the system for the...
9.
Any major malfunction or breakdown of the systems for the...
10.
Any major malfunction or breakdown of the systems of the...
SECTION B
Signals that may indicate abusive behaviour under Regulation (EU) No...
Signals of possible insider dealing or market manipulation
1.
Unusual concentration of transactions and/or orders to trade in a...
2.
Unusual repetition of a transaction among a small number of...
Signals of possible insider dealing
3.
Unusual and significant trading or submission of orders to trade...
4.
Whether orders to trade are given or transactions are undertaken...
Signals of possible market manipulation
5.
Orders to trade given or transactions undertaken which represent a...
6.
Orders to trade given or transactions undertaken by a member/participant...
7.
Orders to trade given or transactions undertaken which are concentrated...
8.
Orders to trade given which change the representation of the...
9.
Transactions or orders to trade by a market/participant with no...
10.
Buying or selling of a financial instrument at the reference...
11.
Transactions or orders to trade which have the effect of,...
12.
Transactions or orders to trade which have the effect of,...
13.
Execution of a transaction, changing the bid-offer prices when this...
14.
Entering orders representing significant volumes in the central order book...
15.
Engaging in a transaction or series of transactions which are...
16.
Transactions carried out as a result of the entering of...
17.
Transactions or orders to trade which have the effect of,...
18.
Entering of orders to trade or a series of orders...
19.
Submitting multiple or large orders to trade often away from...
20.
Entry of small orders to trade in order to ascertain...
21.
Entry of large numbers of orders to trade and/or cancellations...
22.
Posting of orders to trade, to attract other market members/participants...
23.
Executing orders to trade or a series of orders to...
24.
The extent to which, to the best knowledge of the...
Signals for cross-product market manipulation, including across different trading venues...
25.
Transactions or orders to trade which have the effect of,...
26.
Transactions or orders to trade which have the effect of,...
27.
Transactions which have the effect of, or are likely to...
28.
Transactions which have the effect of, or are likely to...
29.
Orders to trade given or transactions undertaken by a member/participant...
30.
Undertaking trading or entering orders to trade in one trading...
31.
Creating or enhancing arbitrage possibilities between a financial instrument and...
ANNEX IV
SECTION 1
Record keeping of client orders and decision to deal
1.
Name and designation of the client
2.
Name and designation of any relevant person acting on behalf...
3.
A designation to identify the trader (Trader ID) responsible within...
4.
A designation to identify the algorithm (Algo ID) responsible within...
5.
B/S indicator;
6.
Instrument identification
7.
Unit price and price notation;
8.
Price
9.
Price multiplier
10.
Currency 1
11.
Currency 2
12.
Initial quantity and quantity notation;
13.
Validity period
14.
Type of the order;
15.
Any other details, conditions and particular instructions from the client;...
16.
The date and exact time of the receipt of the...
SECTION 2
Record keeping of transactions and order processing
1.
name and designation of the client;
2.
name and designation of any relevant person acting on behalf...
3.
a designation to identify the trader (Trader ID) responsible within...
4.
a designation to identify the Algo (Ago ID) responsible within...
5.
Transaction reference number
6.
a designation to identify the order (Order ID)
7.
the identification code of the order assigned by the trading...
8.
a unique identification for each group of aggregated clients' orders...
9.
the segment MIC code of the trading venue to which...
10.
the name and other designation of the person to whom...
11.
designation to identify the Seller & the Buyer
12.
the trading capacity
13.
a designation to identify the Trader (Trader ID) responsible for...
14.
a designation to identify the Algo (Algo ID) responsible for...
15.
B/S indicator;
16.
instrument identification
17.
ultimate underlying
18.
Put/Call identifier
19.
Strike price
20.
Up-front payment
21.
Delivery type
22.
Option style
23.
Maturity date
24.
unit price and price notation;
25.
price
26.
price multiplier
27.
Currency 1
28.
Currency 2
29.
remaining quantity
30.
modified quantity
31.
executed quantity
32.
the date and exact time of submission of the order...
33.
the date and exact time of any message that is...
34.
the date and exact time any message that is transmitted...
35.
Any message that is transmitted to and received from the...
36.
Any other details and conditions that was submitted to and...
37.
Each placed order's sequences in order to reflect the chronology...
38.
Short selling flag
39.
SSR exemption flag;
40.
Waiver flag
Commission Delegated Regulation (EU) 2017/565
of 25 April 2016
supplementing Directive 2014/65/EU of the European Parliament and of the Council as regards organisational requirements and operating conditions for investment firms and defined terms for the purposes of that Directive
(Text with EEA relevance) (revoked)
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .
Regulation revoked (5.4.2024 for the revocation of Arts. 84-89, 23.10.2025 in so far as not already in force) by Financial Services and Markets Act 2023 (c. 29), s. 86(3), Sch. 1 Pt. 3 (with s. 1(4)); S.I. 2023/1382, reg. 4(d)(i); S.I. 2025/1078, reg. 2(b) (with reg. 11)