S.L. 345.23 Art. 7Investment firms providing direct electronicaccessto a trading venue.

(1) A Maltese investment firm that provides direct electronic access to a trading venue shall:

(a) have in place effective systems and controls which ensure a proper assessment and review of the suitability of clients using the service, that clients using the service are prevented from exceeding appropriate pre-set trading and credit thresholds, that trading by clients using the service is properly monitored and that appropriate risk controls prevent trading that may create risks to the Maltese investment firm itself or that could create or contribute to a disorderly market or could be contrary to MAR or the rules of the trading venue:

Provided that direct electronic access to a trading venue without such controls is prohibited.

(b) be responsible for ensuring that clients using that service comply with the requirements of MiFID and the rules of the trading venue;

(c) monitor the transactions in order to identify conduct that may involve market abuse and that is to be reported to the competent authority;

(d) ensure that there is a binding written agreement between the Maltese investment firm and the client regarding the essential rights and obligations arising from the provision of the service and that under the agreement the Maltese investment firm retains responsibility under MiFID; and

(e) notify the competent authority and where the trading venue is not established in Malta, the European regulatory authority of the trading venue at which the Maltese investment firm provides direct electronic access accordingly.

(2) The competent authority may require the Maltese investment firm to provide, on a regular or ad hoc basis, a description of the systems and controls referred to in paragraph (a) of sub-regulation (1) and evidence that those have been applied.

(3) The competent authority shall, on the request of a European regulatory authority of a trading venue, in relation to which the Maltese investment firm provides direct electronic access, communicate without undue delay the information referred to in sub-regulation (2) that it receives from the Maltese investment firm.

(4) The Maltese investment firm shall arrange for records to be kept in relation to the matters referred to in this regulation and shall ensure that those records be sufficient to enable the competent authority to monitor compliance with the requirements of the MiFID.