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Version date: 3 October 2017 - onwards

Question 16 Price of the position of the investment firm [Last update: 3 October 2017]

Art. 24 of MiFID II

How is Recital 79 of the MiFID II Delegated Regulation “The costs and charges disclosure is underpinned by the principle that every difference between the price of a position for the firm and the respective price for the client should be disclosed, including mark-ups and mark-downs.” to be interpreted with regard to the position for the firm?

Answer 16

When an investment firm holds a financial instrument on its own account before offering it to a client, the price of the financial instrument may change due to market value fluctuations. Based on Article 24(4) MiFID II, any costs and charges that are caused by the occurrence of underlying market risk [Recital 79 of the MiFID II Delegated Regulation provides further clarifications on the concept of und erlying market risk.] shall not be included in the aggregated information about costs and charges. Hence, the price of a position of the firm as referred to in Recital 79 of the MiFID II Delegated Regulation should

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