Requirement (MIFID)
Article 39 Organisational requirements
Requirements MIFID - DIRECTIVE 2004/39/EC
Description
Description
Member States shall require the regulated market:
(a) to have arrangements to identify clearly and manage the potential
adverse consequences, for the operation of the regulated market or
for its participants, of any conflict of interest between the interest of
the regulated market, its owners or its operator and the sound functioning
of the regulated market, and in particular where such
conflicts of interest might prove prejudicial to the accomplishment
of any functions delegated to the regulated market by the competent
authority;
(b) to be adequately equipped to manage the risks to which it is
exposed, to implement appropriate arrangements and systems to
identify all significant risks to its operation, and to put in place
effective measures to mitigate those risks;
(c) to have arrangements for the sound management of the technical
operations of the system, including the establishment of effective
contingency arrangements to cope with risks of systems disruptions;
(d) to have transparent and non-discretionary rules and procedures that
provide for fair and orderly trading and establish objective criteria
for the efficient execution of orders;
(e) to have effective arrangements to facilitate the efficient and timely
finalisation of the transactions executed under its systems;
(f) to have available, at the time of authorisation and on an ongoing
basis, sufficient financial resources to facilitate its orderly functioning,
having regard to the nature and extent of the transactions
concluded on the market and the range and degree of the risks to
which it is exposed.