The FCA has published a new webpage on MiFID II authorisations and variation of permissions.
On its webpage, the FCA highlights that some proprietary traders who are not authorised may need to be authorised under MiFID II. The FCA provides the example of unregulated proprietary traders who use a form of direct electronic access (DEA) provided by regulated firms to access trading venues, and warns that these traders may need to be authorised from 3 January 2018. The FCA also recommends that proprietary traders consult the guidance available in the FCA’s application and notification user guide and Handbook, and urges them to confirm whether they will need authorisation and, if so, to make an application.
The FCA also reminds firms or venues that provide their clients with DEA to trading venues that they will have a duty under MiFID II to carry out due diligence on their prospective DEA clients. The FCA also recommends that such entities work closely with their clients to ensure they are aware of the potential need to be authorised and be authorised on time.
View FCA reminds proprietary traders and direct electronic access providers about MiFID II obligations, 18 September 2017