Schedule 3, paragraph 3C

Where the exchange permits direct electronic access to a trading venue it operates it must— ensure that a member of, or participant in, the trading venue is only permitted to provide direct electronic access to the venue if the member or participant— is an investment firm, as defined by Article 4.1.1 of the markets in financial instruments directive (definitions), authorised in accordance with the directive; is a credit institution authorised in accordance with the capital requirements directive ; comes within Article 2.1(a), (e), (i), or (j) of the markets in financial instruments directive (exemptions) and has a Part 4A permission relating to investment services and activities; is a third country firm providing the direct electronic access in the course of exercising rights under Article 46.1 (general provisions) or 47.3 (equivalence decision) of the markets in financial instruments regulation; is a third country firm and the provision of the direct electronic access by that firm is subject to the exclusion in article 72 of the Financial Services and Markets Act 2000 (Regulated Activities) Order 2001 ; or is a third country firm which does not come within paragraph (iv) or (v) and is otherwise permitted to provide the direct electronic access under the Act; ensure that appropriate criteria are set and applied for the suitability of persons to whom direct electronic access services may be provided; ensure that a member of, or participant in, the trading venue retains responsibility for adherence to the requirements of the markets in financial instruments directive in respect of orders and trades executed using the direct electronic access service; set appropriate standards for risk controls and thresholds on trading through direct electronic access; be able to distinguish and if necessary stop orders or trading on that trading venue by a person using direct electronic access separately from— other orders; or trading by the member or participant providing the direct electronic access; and have arrangements in place to suspend or terminate the provision to a client of direct electronic access to that trading venue by a member of, or participant in, the trading venue in the case of non-compliance with this paragraph.

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Source: legislation.gov.uk · retrieved 2026-09-04