Paragraph 7 “Direct electronic access”F1

Changes not yet applied. Later legislation changes this provision in ways not yet written into the text below:

Sch. 3 para. 1(k) words substituted by Financial Services and Markets Act 2000 (Regulated Activities) 2025 art. 2(a)
Sch. 3 para. 1A inserted by Financial Services and Markets Act 2000 (Regulated Activities) 2025 art. 2(b)
Sch. 3 para. 2(a) words inserted by Financial Services and Markets Act 2000 (Regulated Activities) 2025 art. 2(c)(i)
Sch. 3 para. 2(a)(i) words inserted by Financial Services and Markets Act 2000 (Regulated Activities) 2025 art. 2(c)(ii)
Sch. 3 para. 2(c) words inserted by Financial Services and Markets Act 2000 (Regulated Activities) 2025 art. 2(c)(iii)

(1)

This paragraph applies for the purposes of the exemption in paragraph 1(e).

(2)

“Direct electronic access” means an arrangement where a member or participant or client of a trading venue permits a person to use its trading code so the person can electronically transmit orders relating to a financial instrument directly to the trading venue, including—

(a)

arrangements which involve the use by a person of the infrastructure of the member or participant or client, or any connecting system provided by the member or participant or client, to transmit the orders (direct market access), and

(b)

arrangements where such an infrastructure is not used by a person (sponsored access).

(3)

A person is to be considered not capable of electronically transmitting orders relating to a financial instrument directly to a trading venue where either or both of the following apply—

(a)

that person cannot exercise discretion regarding—

(i)

the exact fraction of a second of order entry, and

(ii)

the lifetime of the order within that timeframe;

(b)

the electronic transmission of orders takes place through arrangements for optimisation of order execution processes that determine the parameters of the order other than the trading venue where the order should be submitted, unless these arrangements are embedded into that person’s systems and not into those of—

(i)

the member or participant of a regulated market or of an multilateral trading facility, or

(ii)

a client of an organised trading facility.

Annotations

Textual amendments

F1: Sch. 3 Pt. 3 inserted (23.10.2025) by The Markets in Financial Instruments (Miscellaneous Amendments) Regulations 2025 (S.I. 2025/1020), regs. 1(2), 8(3) (with reg. 17); S.I. 2025/1078, reg. 2(b) (with reg. 11)

Notes on Schedule 3

Textual amendments

F1: Sch. 3 substituted (31.12.2020) by The Markets in Financial Instruments (Amendment) (EU Exit) Regulations 2018 (S.I. 2018/1403), regs. 1(3), 4(8) (with savings in S.I. 2019/680, reg. 11 (as amended by S.I. 2019/1233, regs. 1(3), 3 and S.I. 2019/710, regs. 1(2), 16(2)(c)); 2020 c. 1, Sch. 5 para. 1(1)