ESMA · ESMA_QA_1525 Answer Published
Positions held by an investment firm on behalf of their clients
- Regulation
- Markets in Financial Instruments Directive II (MiFID II) Directive 2014/65/EU- Secondary Markets
- Topic
- Position reporting
- Submitted
- 2017-07-07
- Answered
- 2017-07-07
Question
Do positions held by an investment firm on behalf of their clients add to the investment firm’s own positions?
Answer
[ESMA 70-872942901-36 Commodity derivatives Q&A, Q&A 4.1] Article 57(1) explicitly introduces the possibility that positions are held on behalf of another entity for legal or operational reasons. In order to avoid double counting, such positions are only to be reported as the positions of the person on whose behalf they are held. They are not to be added to or netted against other positions held by the investment firm.
This Q&A is published by European Securities and Markets Authority and is non-binding. It does not constitute legal advice. Updated weekly from official ESA sources.
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