Client consent to execution policy and execution of orders outside a regulated market or MTF - COBS Provision: Difference between revisions

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====Commentary====
====Commentary====
=====To whom does it apply?=====
=====How does one consent?=====
From {{tag|CESR}}'s "[[Media:CESR Best Execution QA 07_320.pdf|Best Execution under MiFID]]" Questions and Answers document of May 2007 (CESR/07-320):
From {{tag|CESR}}'s "[[Media:CESR Best Execution QA 07_320.pdf|Best Execution under MiFID]]" Questions and Answers document of May 2007 (CESR/07-320):


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====Commentary====
=====Consent and Express Consent=====
From the "[[Media:CESR Best Execution QA 07_320.pdf|Best Execution under MiFID]]" Q&A document:
 
{{quote|'''''Q21 What is the difference between "consent" and "express consent"?'''''<br>
21.1 Where {{tag|MiFID}} requires "prior express consent", CESR considers that this entails '''an actual demonstration of consent by the client which may be provided by signature in writing or an equivalent means''' (electronic signature), by a click on a web page or orally by telephone or in person, with appropriate record keeping in each case. <br>}}
 
=====Products which don't trade on a {{fcaprov|regulated market}} or {{fcaprov|MTF}}=====
=====Products which don't trade on a {{fcaprov|regulated market}} or {{fcaprov|MTF}}=====


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*"'''bilateral'''" transactions where client trades with the broker directly in a principal capacity and any transaction between the broker and the market is by way of {{tag|hedge}} and not fulfillment of the customer's order. These are things like OTC derivatives under an {{isdama}}; spot FX trades and so on.
*"'''bilateral'''" transactions where client trades with the broker directly in a principal capacity and any transaction between the broker and the market is by way of {{tag|hedge}} and not fulfillment of the customer's order. These are things like OTC derivatives under an {{isdama}}; spot FX trades and so on.


=====Consent and Express Consent=====
From the "[[Media:CESR Best Execution QA 07_320.pdf|Best Execution under MiFID]]" Q&A document:
{{quote|'''''Q21 What is the difference between "consent" and "express consent"?'''''<br>
21.1 Where {{tag|MiFID}} requires "prior express consent", CESR considers that this entails '''an actual demonstration of consent by the client which may be provided by signature in writing or an equivalent means''' (electronic signature), by a click on a web page or orally by telephone or in person, with appropriate record keeping in each case. <br>}}




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