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Reception and transmission of orders in relation to one or more financial instruments (MiFID definitions)
European Union Electricity Market Glossary



Reception and transmission of orders in relation to one or more financial instruments is included in the Section A (Investment services and activities) of the MiFID II Annex I point 1.


In most Members States, an authorisation to exercise reception and transmission of orders (MiFID A1) is mandatory for the execution of orders (MiFID A2), but there are exceptions. 


Transmission of orders triggers a EUR 125 000 initial capital requirement under CRD IV (European Banking Authority (EBA) in the Report on Investment Firms, Response to the Commission's Call for Advice of December 2014, EBA/Op/2015/20 (p. 18, 20)).


Only an initial capital requirement is applicable to firms that solely receive and transmit orders and/or give investment advice and therefore do not hold client money and securities.


These investment services and activities are seen as having relatively low prudential risk because the investment firm has no access to the funds or securities belonging to its clients (the aforementioned EBA Report, p. 90).



Last Updated on Sunday, 29 May 2016 10:24


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