Execution of orders on behalf of clients
Concluding agreements to buy or sell financial instruments on behalf of clients requires an investment firm licence or a banking licence under MiFID II Annex I, Section A(2). Authorised brokerages can passport across the European Economic Area, and must establish comprehensive best execution policies and transaction reporting to supervisory authorities.
Definition
Concluding agreements to buy or sell financial instruments on behalf of clients.
- MiFID II, Annex I, Section A(2): official text
Which licence you need
Licence families that typically permit this activity:
- IF · Abu Dhabi Global Market (ADGM)
Financial Services Permission for Dealing in Investments as Principal (Category 2)
FSRA
- IF · Abu Dhabi Global Market (ADGM)
Financial Services Permission for Dealing in Investments as Agent or Matched Principal (Category 3A)
FSRA
- IF · Australia
Australian financial services licence (AFSL)
ASIC
- IF · Bermuda
Investment Business Licence (standard licence, under the Investment Business Act 2003)
BMA
- IF · Cayman Islands
Securities Investment Business Licence / Registered Person
CIMA
- IF · Cyprus
Cyprus Investment Firm (CIF) authorisation
CySEC
- IF · Czech Republic
Investment Firm licence (povolení k činnosti obchodníka s cennými papíry - OCP)
CNB
- IF · Dubai International Financial Centre (DIFC)
Financial Services Permission for Dealing in Investments as Principal (Category 2)
DFSA
- IF · Dubai International Financial Centre (DIFC)
Financial Services Permission for Dealing in Investments as Agent or Operating an Alternative Trading System (Category 3A)
DFSA
- IF · Estonia
Authorisation as an investment firm
FI
- IF · Germany
Investment firm licence (Erlaubnis zur Erbringung von Wertpapierdienstleistungen nach § 15 WpIG)
BaFin
- IF · Hong Kong
Type 1 Licence for Dealing in Securities
SFC
- IF · Hong Kong
Type 2 Licence for Dealing in Futures Contracts
SFC
- IF · Ireland
Investment Firm Authorisation (MiFID II)
CBI
- IF · Italy
Società di Intermediazione Mobiliare (SIM) investment firm licence
CONSOB
- IF · Latvia
Investment firm licence
LB
- IF · Lithuania
Financial brokerage firm licence
LB
- IF · Luxembourg
Investment firm authorisation
CSSF
- IF · Malaysia (Labuan)
Securities Licensee licence (dealing in / advising on securities)
Labuan FSA
- IF · Malta
Investment services licence (Category 1, 2, or 3)
MFSA
- IF · Mauritius
Investment Dealer Licence
FSC
- IF · Netherlands
Investment firm licence (Vergunning beleggingsonderneming) under Wft Article 2:96 and MiFID II
AFM
- IF · Poland
Brokerage House licence (dom maklerski)
KNF
- IF · Seychelles
Securities Dealer's Licence (full or restricted)
FSA
- IF · Singapore
Capital Markets Services (CMS) Licence
MAS
- IF · Slovakia
Investment firm licence (povolenie na poskytovanie investičných služieb pre obchodníka s cennými papiermi)
NBS
- IF · South Africa
Over-the-Counter Derivative Provider (ODP) authorisation under the Financial Markets Act
FSCA
- IF · Spain
Sociedad de Valores y Agencia de Valores (SV / AV) investment firm licence
CNMV
- IF · Switzerland
Securities firm licence (Wertpapierhaus-Bewilligung nach Art. 41 FINIG)
FINMA
- IF · United Kingdom
MIFIDPRU Investment Firm Authorisation (Part 4A FSMA)
FCA
Where it can be licensed
Frequently asked questions
What factors determine best execution under MiFID II?
Brokers must consider price, execution costs, speed, likelihood of execution and settlement, order size and market impact. For retail clients, total consideration, comprising the instrument price and all associated execution expenses, serves as the primary benchmark.
What post-trade transaction reporting is required for executed orders?
Executing firms must report complete transaction details to their national competent authority or through an approved reporting mechanism by the close of the following working day, including trader identification, client identifiers and exact trade parameters.
Sources
- MiFID II Annex I, Section A(2) · retrieved 2026-09-24
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