# 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and Directive 2000/12/EC of the European Parliament and of the Council and repealing Council Directive 93/22/EEC (repealed) EU Directive 2004/39 ยท adopted 21 April 2004 Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004 on markets in financial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and Directive 2000/12/EC of the European Parliament and of the Council and repealing Council Directive 93/22/EEC (repealed) ## Introductory text Directive 2004/39/EC of the European Parliament and of the Council of 21 April 2004 on markets in financial instruments amending Council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and Directive 2000/12/EC of the European Parliament and of the Council and repealing Council Directive 93/22/EEC (repealed) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Title I: DEFINITIONS AND SCOPE ## 1 Scope . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 2 Exemptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 3 Optional exemptions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 4 Definitions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Title II: AUTHORISATION AND OPERATING CONDITIONS FOR INVESTMENT FIRMS ### Chapter I: CONDITIONS AND PROCEDURES FOR AUTHORISATION ## 5 Requirement for authorisation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 6 Scope of authorisation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 7 Procedures for granting and refusing requests for authorisation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 8 Withdrawal of authorisations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 9 Persons who effectively direct the business . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 10 Shareholders and members with qualifying holdings . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 10a Assessment period . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 10b Assessment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 11 Membership of an authorised Investor Compensation Scheme . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 12 Initial capital endowment . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 13 Organisational requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 14 Trading process and finalisation of transactions in an MTF . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 15 Relations with third countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Chapter II: OPERATING CONDITIONS FOR INVESTMENT FIRMS ### Section 1: General provisions ## 16 Regular review of conditions for initial authorisation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 17 General obligation in respect of on-going supervision . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 18 Conflicts of interest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Section 2: Provisions to ensure investor protection ## 19 Conduct of business obligations when providing investment services to clients . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 20 Provision of services through the medium of another investment firm . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 21 Obligation to execute orders on terms most favourable to the client . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 22 Client order handling rules . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 23 Obligations of investment firms when appointing tied agents . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 24 Transactions executed with eligible counterparties . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Section 3: Market transparency and integrity ## 25 Obligation to uphold integrity of markets, report transactions and maintain records . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 26 Monitoring of compliance with the rules of the MTF and with other legal obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 27 Obligation for investment firms to make public firm quotes . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 28 Post-trade disclosure by investment firms . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 29 Pre-trade transparency requirements for MTFs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 30 Post-trade transparency requirements for MTFs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Chapter III: RIGHTS OF INVESTMENT FIRMS ## 31 Freedom to provide investment services and activities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 32 Establishment of a branch . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 33 Access to regulated markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 34 Access to central counterparty, clearing and settlement facilities and right to designate settlement system . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 35 Provisions regarding central counterparty, clearing and settlement arrangements in respect of MTFs . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Title III: REGULATED MARKETS ## 36 Authorisation and applicable law . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 37 Requirements for the management of the regulated market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 38 Requirements relating to persons exercising significant influence over the management of the regulated market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 39 Organisational requirements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 40 Admission of financial instruments to trading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 41 Suspension and removal of instruments from trading . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 42 Access to the regulated market . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 43 Monitoring of compliance with the rules of the regulated market and with other legal obligations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 44 Pre-trade transparency requirements for regulated markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 45 Post-trade transparency requirements for regulated markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 46 Provisions regarding central counterparty and clearing and settlement arrangements . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 47 List of regulated markets . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Title IV: COMPETENT AUTHORITIES ### Chapter I: DESIGNATION, POWERS AND REDRESS PROCEDURES ## 48 Designation of competent authorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 49 Cooperation between authorities in the same Member State . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 50 Powers to be made available to competent authorities . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 51 Administrative sanctions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 52 Right of appeal . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 53 Extra-judicial mechanism for investors' complaints . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 54 Professional secrecy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 55 Relations with auditors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Chapter II: COOPERATION BETWEEN THE COMPETENT AUTHORITIES OF THE MEMBER STATES AND WITH ESMA ## 56 Obligation to cooperate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 57 Cooperation in supervisory activities, on-the-spot verifications or in investigations . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 58 Exchange of information . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 58a Binding mediation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 59 Refusal to cooperate . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 60 Inter-authority consultation prior to authorisation . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 61 Powers for host Member States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 62 Precautionary measures to be taken by host Member States . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 62a Cooperation and exchange of information with ESMA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Chapter III: COOPERATION WITH THIRD COUNTRIES ## 63 Exchange of information with third countries . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Title V: FINAL PROVISIONS ## 64 Committee procedure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 64a Sunset clause . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 65 Reports and review . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 66 Amendment of Directive 85/611/EEC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 67 Amendment of Directive 93/6/EEC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 68 Amendment of Directive 2000/12/EC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 69 Repeal of Directive 93/22/EEC . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 70 Transposition . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 71 Transitional provisions . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 72 Entry into force . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## 73 Addressees . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Annex I: LIST OF SERVICES AND ACTIVITIES AND FINANCIAL INSTRUMENTS ### Section A: Investment services and activities ## (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Section B: Ancillary services ## (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Section C: Financial Instruments ## (1) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## (2) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## (3) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## (4) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## (5) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## (6) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## (7) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## (8) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## (9) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## (10) . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## Annex II PROFESSIONAL CLIENTS FOR THE PURPOSE OF THIS DIRECTIVE . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## I Categories of client who are considered to be professionals . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ### Division II: Clients who may be treated as professionals on request ## II.1 Identification criteria . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . ## II.2 Procedure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . --- Source: https://www.legislation.gov.uk/eudr/2004/39 (the official version) Page: https://openlegislation.uk/eu-directive-2004-39 Contains public sector information licensed under the Open Government Licence v3.0. Source: legislation.gov.uk, The National Archives.