matched principal trading
matched principal trading
Section titled “matched principal trading”| Defined term | matched principal trading |
| Source | MiFID II |
| Reference | Article 4(1), point (38) |
| Status | Published |
| Refresh rule | Regenerate after source legal-text changes |
Definition
Section titled “Definition”(38) ‘matched principal trading’ means a transaction where the facilitator interposes itself between the buyer and the seller to the transaction in such a way that it is never exposed to market risk throughout the execution of the transaction, with both sides executed simultaneously, and where the transaction is concluded at a price where the facilitator makes no profit or loss, other than a previously disclosed commission, fee or charge for the transaction;
Source
Section titled “Source”MiFID II, Article 4(1), point (38).