5.21.1 Investment Firm matching two orders from clients without interposing itself
Investment Firm X wants to sell a given instrument on own account.
Investment Firm Y wants to buy that same instrument on own account.
Investment Firm Z brings together Investment Firms X and Y but is not a party to the transaction.
Investment Firms X and Y agree between themselves on the details of the transaction.
Investment Firm Z does not have any reporting obligation, instead Firms X and Y should report.
Investment Firm X knows at the point of execution that Y is its counterparty.
Investment Firm Y knows at the point of execution that X is its counterparty.
How should Investment Firms X and Y report?
5.21.2 Investment Firm introducing its client to another Investment Firm without interposing itself
Client A wants to buy a given instrument. His broker, Firm X, does not deal in such instruments and introduces Client A to Investment Firm Y.
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