More about MIFID
The EU legal act known as MiFID
The EU legal act known as MiFID thoroughly regulates the content and scope of providing investment services, as well as issues relating to the licences of investment firms and the organizers of the regulated securities market and aspects associated with supervision.
- With the aim of protecting the investor the directive stipulates different customer categories to be applied in providing investment services. Categorization of customers entails an obligation on the service provider to determine the scope of the customer’s knowledge of and experience in securities market issues. When providing customer different investment products and services, service provider must evaluate the suitability and appropriateness of investment products and services.
- Service providers are also obliged to give considerably more information to customers about different investment services, types of securities as well as the relating fees and expenses.
- The new rules also stipulate that in the event the customer gives the service provider the instruction to execute a transaction with his/her assets (e.g. to purchase or sell securities), the service provider is required to achieve best execution for the customer.
- MiFID facilitates integration of the securities markets of EU member states, improves investor protection and increases transparency of investment services.
- MiFID aims to raise the efficiency of the securities market and improve the investment opportunities of customers.
- MiFID thoroughly regulates the content and scope of investment services, the principles of issuance and withdrawal of licences to investment firms and market organizers, control over acquisition and alienation of majority stake in these legal persons as well as their activities in other EU member states.
- MiFID also sets out requirements governing the organization of the service provider as well as standards and detailed rules of providing investment services, which eliminate impediments to cooperation between supervision authorities and facilitate convergence of the quality of supervision in the EU member states.
LEI (Legal Entity Identifier) code
As of 3 January 2018, legal entities who wish to perform transactions involving securities or derivatives (such as FX Forwards, FX Swaps or Interest Rate Swaps) will need to submit to the bank their LEI (Legal Entity Identifier). This code is used globally to identify legal entities. It is a combination of 20 numbers and letters.
HOW CAN AN LEI BE OBTAINED?
You can request an LEI from an authorized LEI issuer, who assesses certain information about the company to which the LEI will be issued before issuing the LEI.
- Choose an LEI provider. See section below.
- Register your details on the provider's website.
- Pay the charge for registration. The charge appears on the website of each individual LEI provider.
- The LEI provider approves your details.
- Please provide Danske Bank with your new LEI by sending it by email email@example.com.
- Renew your LEI every year.
Requesting a LEI is subject to a fee (ca. €100) and it can take up to a couple of weeks. An annual fee may also be applied (ca. €80).
Cost and charges
Following MiFID II regulation, Danske Bank must inform the customer about the cost and charges related to both the financial instrument and to the investment service.
- Cost handbook for equities, bonds and fund units (PDF)
- Cost overview for FX-products and derivatives
- Eligible counterparties can find information about costs and charges from here.
Please note that the examples are generic, and specific cost and charges may vary from the example shown. If you want to know the exact cost and charges related to a specific trade you consider entering, please contact Danske Bank.
Systematic Internaliser SI
Going forward, Danske Bank will continuously communicate our SI status on this webpage.
Systematic Internaliser (SI) of customer orders means and investment firm which, on an organised, frequent, systematic and substantial basis, executes client orders on own account outside a trading venue and without operating a multilateral system.
The SI regime came into force 3 January 2018. From this date, investment firms can choose to become an SI in a given financial instrument or group of financial instruments.
As of 1 September 2018, investment firms will be automatically classified as an SI in those financial instruments which they have traded on an organised basis frequently, systematically and substantially. The SI status will be evaluated continuously in terms of business needs and regulatory requirements.
Danske Bank as SI
Danske Bank will ‘opt in’ as Systematic Internaliser, starting from 3 January 2018 under the MIC code ‘DASI’. By doing so, Danske Bank will have certain obligations to provide quotes to customers and make these quotes public. Post trade publication will be handled to help customers navigate through the new transparency regimes.
Danske Bank will serve customers as SI in ToTV instruments in the below asset categories:
- Nordic Equities
- Fixed income derivatives
- FX instruments
See details in attached document: Systematic Internaliser (PDF)
How does Danske Bank handle pre and post trade publication?
Danske Bank will use an Approved Publication Arrangement (APA) for pre and post trade publication.
- For pre trade publication, we will use BATS for equity and Trax for non-equity.
- For post trade publication, we will use Nasdaq and Trax.
Access to Danske Bank SI quotes you can find under links bellow