Dealing on own account: Difference between revisions
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{{quote|“Dealing on own account involves position-taking which includes proprietary trading and positions arising from market-making. It can also include positions arising from client servicing, for example where a firm acts as a systematic internaliser or executes an order by taking a market or ‘unmatched principal’ position on its books. | {{quote|“Dealing on own account involves position-taking which includes proprietary trading and positions arising from market-making. It can also include positions arising from client servicing, for example where a firm acts as a systematic internaliser or executes an order by taking a market or ‘unmatched principal’ position on its books. | ||
Dealing on own account may be relevant to firms with a dealing in investments as principal permission in relation to MiFID [[financial instruments]], but only where they trade [[financial instruments]] on a regular basis for their own account, as part of their MiFID business. We do not think that this activity is likely to be relevant in cases where a person acquires a long term stake in a company for strategic purposes or for most venture capital or private equity activity. Where a person invests in a venture capital fund with a view to selling its interests in the medium to long term only, in our view he is not dealing on own account for the purposes of MiFID.”}} | Dealing on own account may be relevant to firms with a dealing in investments as principal permission in relation to MiFID [[financial instruments]], but only where they trade [[financial instruments]] on a regular basis for their own account, as part of their MiFID business. We do not think that this activity is likely to be relevant in cases where a person acquires a long term stake in a company for strategic purposes or for most venture capital or private equity activity. Where a person invests in a venture capital fund with a view to selling its interests in the medium to long term only, in our view he is not dealing on own account for the purposes of MiFID.”}} | ||
Indeed, MiFID is meant to ''protect'' people like that, not ''regulate'' them. | |||
===The curious case of [[commodity derivatives]] and emissions=== | ===The curious case of [[commodity derivatives]] and emissions=== | ||