# Dealing on own account Source page: https://protegra.io/licensing/activities/dealing-own-account/ Trading against the firm's own capital to conclude a market transaction needs an investment firm licence or a banking licence under MiFID II Annex I, Section A(3). Market makers and systematic internalisers authorised this way face strict capital adequacy rules, conduct supervision and pre-trade transparency duties, and can passport across the EEA. ## Definition Trading financial instruments against proprietary capital, which includes acting as counterparty to client trades. - MiFID II, Annex I, Section A(3): [official text](https://eur-lex.europa.eu/eli/dir/2014/65/oj) ## Which licence you need Licence families that typically permit this activity: - [Investment firm / broker-dealer](https://protegra.io/licensing/licences/investment-firm/) - [Bank / credit institution](https://protegra.io/licensing/licences/bank/) - [IF · Abu Dhabi Global Market (ADGM)Investment firm licenceFinancial Services Permission for Dealing in Investments as Principal (Category 2)FSRA](https://protegra.io/licensing/licences/investment-firm/adgm-cat2/) - [IF · AustraliaAustralian financial services licence (AFSL)ASIC](https://protegra.io/licensing/licences/investment-firm/australia/) - [IF · BermudaInvestment Business LicenceInvestment Business Licence (standard licence, under the Investment Business Act 2003)BMA](https://protegra.io/licensing/licences/investment-firm/bermuda/) - [IF · Cayman IslandsSecurities Investment Business Licence / Registered PersonCIMA](https://protegra.io/licensing/licences/investment-firm/cayman-islands/) - [IF · CyprusCyprus Investment Firm (CIF) authorisationCySEC](https://protegra.io/licensing/licences/investment-firm/cyprus-cif/) - [IF · Czech RepublicInvestment Firm licenceCNB](https://protegra.io/licensing/licences/investment-firm/czech-republic/) - [IF · Dubai International Financial Centre (DIFC)Investment firm licenceFinancial Services Permission for Dealing in Investments as Principal (Category 2)DFSA](https://protegra.io/licensing/licences/investment-firm/difc-cat2/) - [IF · EstoniaAuthorisation as an investment firmFI](https://protegra.io/licensing/licences/investment-firm/estonia/) - [IF · GermanyInvestment firm licenceBaFin](https://protegra.io/licensing/licences/investment-firm/germany/) - [IF · Hong KongType 1 Licence for Dealing in SecuritiesSFC](https://protegra.io/licensing/licences/investment-firm/hong-kong-type1/) - [IF · Hong KongType 2 Licence for Dealing in Futures ContractsSFC](https://protegra.io/licensing/licences/investment-firm/hong-kong-type2/) - [IF · IrelandInvestment Firm Authorisation (MiFID II)CBI](https://protegra.io/licensing/licences/investment-firm/ireland/) - [IF · ItalyInvestment firm licence (SIM)CONSOB](https://protegra.io/licensing/licences/investment-firm/italy-sim/) - [IF · LatviaInvestment firm licenceLB](https://protegra.io/licensing/licences/investment-firm/latvia/) - [IF · LithuaniaFinancial brokerage firm licenceLB](https://protegra.io/licensing/licences/investment-firm/lithuania/) - [IF · LuxembourgInvestment firm authorisationCSSF](https://protegra.io/licensing/licences/investment-firm/luxembourg/) - [IF · Malaysia (Labuan)Securities Licensee licenceSecurities Licensee licence (dealing in / advising on securities)Labuan FSA](https://protegra.io/licensing/licences/investment-firm/labuan-labuan/) - [IF · MaltaInvestment services licence (Category 1, 2, or 3)MFSA](https://protegra.io/licensing/licences/investment-firm/malta/) - [IF · MauritiusInvestment Dealer LicenceFSC](https://protegra.io/licensing/licences/investment-firm/mauritius-investment-dealer/) - [IF · NetherlandsInvestment firm licenceInvestment firm licence (Vergunning beleggingsonderneming) under Wft Article 2:96 and MiFID IIAFM](https://protegra.io/licensing/licences/investment-firm/netherlands/) - [IF · PolandBrokerage House licence (dom maklerski)KNF](https://protegra.io/licensing/licences/investment-firm/poland-brokerage/) - [IF · SeychellesSecurities Dealer's LicenceFSA](https://protegra.io/licensing/licences/investment-firm/seychelles/) - [IF · SingaporeCapital Markets Services (CMS) LicenceMAS](https://protegra.io/licensing/licences/investment-firm/singapore-cms/) - [IF · SlovakiaInvestment firm licenceNBS](https://protegra.io/licensing/licences/investment-firm/slovakia/) - [IF · South AfricaOver-the-Counter Derivative Provider (ODP) authorisationOver-the-Counter Derivative Provider (ODP) authorisation under the Financial Markets ActFSCA](https://protegra.io/licensing/licences/investment-firm/south-africa-odp/) - [IF · SpainAV) investment firm licenceCNMV](https://protegra.io/licensing/licences/investment-firm/spain-broker-dealer/) - [IF · SwitzerlandSecurities firm licenceFINMA](https://protegra.io/licensing/licences/investment-firm/switzerland/) - [IF · United KingdomMIFIDPRU Investment Firm Authorisation (Part 4A FSMA)FCA](https://protegra.io/licensing/licences/investment-firm/united-kingdom/) ## Where it can be licensed | | EU/EEA passport | Domestic | | --- | --- | --- | | [Abu Dhabi Global Market (ADGM): Investment firm licence](https://protegra.io/licensing/licences/investment-firm/adgm-cat2/) | | ✓ | | [Australia: Australian financial services licence (AFSL)](https://protegra.io/licensing/licences/investment-firm/australia/) | | ✓ | | [Bermuda: Investment Business Licence](https://protegra.io/licensing/licences/investment-firm/bermuda/) | | ✓ | | [Cayman Islands: Securities Investment Business Licence / Registered Person](https://protegra.io/licensing/licences/investment-firm/cayman-islands/) | | ✓ | | [Cyprus: Cyprus Investment Firm (CIF) authorisation](https://protegra.io/licensing/licences/investment-firm/cyprus-cif/) | ✓ | | | [Czech Republic: Investment Firm licence](https://protegra.io/licensing/licences/investment-firm/czech-republic/) | ✓ | | | [Dubai International Financial Centre (DIFC): Investment firm licence](https://protegra.io/licensing/licences/investment-firm/difc-cat2/) | | ✓ | | [Estonia: Authorisation as an investment firm](https://protegra.io/licensing/licences/investment-firm/estonia/) | ✓ | | | [Germany: Investment firm licence](https://protegra.io/licensing/licences/investment-firm/germany/) | ✓ | | | [Hong Kong: Type 1 Licence for Dealing in Securities](https://protegra.io/licensing/licences/investment-firm/hong-kong-type1/) | | ✓ | | [Hong Kong: Type 2 Licence for Dealing in Futures Contracts](https://protegra.io/licensing/licences/investment-firm/hong-kong-type2/) | | ✓ | | [Ireland: Investment Firm Authorisation (MiFID II)](https://protegra.io/licensing/licences/investment-firm/ireland/) | ✓ | | | [Italy: Investment firm licence (SIM)](https://protegra.io/licensing/licences/investment-firm/italy-sim/) | ✓ | | | [Latvia: Investment firm licence](https://protegra.io/licensing/licences/investment-firm/latvia/) | ✓ | | | [Lithuania: Financial brokerage firm licence](https://protegra.io/licensing/licences/investment-firm/lithuania/) | ✓ | | | [Luxembourg: Investment firm authorisation](https://protegra.io/licensing/licences/investment-firm/luxembourg/) | ✓ | | | [Malaysia (Labuan): Securities Licensee licence](https://protegra.io/licensing/licences/investment-firm/labuan-labuan/) | | ✓ | | [Malta: Investment services licence (Category 1, 2, or 3)](https://protegra.io/licensing/licences/investment-firm/malta/) | ✓ | | | [Mauritius: Investment Dealer Licence](https://protegra.io/licensing/licences/investment-firm/mauritius-investment-dealer/) | | ✓ | | [Netherlands: Investment firm licence](https://protegra.io/licensing/licences/investment-firm/netherlands/) | ✓ | | | [Poland: Brokerage House licence (dom maklerski)](https://protegra.io/licensing/licences/investment-firm/poland-brokerage/) | ✓ | | | [Seychelles: Securities Dealer's Licence](https://protegra.io/licensing/licences/investment-firm/seychelles/) | | ✓ | | [Singapore: Capital Markets Services (CMS) Licence](https://protegra.io/licensing/licences/investment-firm/singapore-cms/) | | ✓ | | [Slovakia: Investment firm licence](https://protegra.io/licensing/licences/investment-firm/slovakia/) | ✓ | | | [South Africa: Over-the-Counter Derivative Provider (ODP) authorisation](https://protegra.io/licensing/licences/investment-firm/south-africa-odp/) | | ✓ | | [Spain: AV) investment firm licence](https://protegra.io/licensing/licences/investment-firm/spain-broker-dealer/) | ✓ | | | [Switzerland: Securities firm licence](https://protegra.io/licensing/licences/investment-firm/switzerland/) | | ✓ | | [United Kingdom: MIFIDPRU Investment Firm Authorisation (Part 4A FSMA)](https://protegra.io/licensing/licences/investment-firm/united-kingdom/) | | ✓ | ## Frequently asked questions ### Does proprietary trading always require a MiFID II investment firm licence? Not always. A firm trading purely for its own account, with no external clients, may qualify for the dealing-on-own-account exemption under MiFID II Article 2. Market makers, members of a regulated market and algorithmic high-frequency traders are usually excluded from that exemption. ### What transparency requirements apply to systematic internalisers? A systematic internaliser must publish firm bid and offer quotes during market hours, for liquid instruments up to standard market size. Commercial access to those quotes has to stay non-discriminatory, open equally to qualified institutional and retail counterparties. ## Sources 1. [MiFID II Annex I, Section A(3)](https://eur-lex.europa.eu/eli/dir/2014/65/oj): retrieved 2026-09-24 Last verified 2026-09-24 · Author: Danil Marmysh · Reviewed by Anastasia Sidorenkova · © Protegra. Data: CC BY 4.0, cite "Protegra Licensing Atlas". Not legal advice.