systematic internaliser

an investment firm which:180

1. (a) on an organised, frequent, systemic and substantial basis, deals on own account when executing client orders outside a regulated market, UK MTF or UK OTF without operating a multilateral system; and180
2. (b) either:180:
   1. (i) satisfies the criteria set out in Article 12, 13, 14, 15 or 16 of the MiFID Org Regulation assessed, in accordance with Article 17 of that Regulation; or180
   2. (ii) has chosen to opt-in to the systemic internaliser regime.180

For these purposes:180

1. (A) the frequent and systemic basis is to be measured either by the number of OTC trades in the financial instrument carried out by the investment firm on own account when executing client orders; and180
2. (B) the substantial basis is to be measured either by the size of the OTC trading carried out by the investment firm in relation to the total trading of the investment firm in a specific financial instrument or by the size of the OTC trading carried out by the investment firm in relation to the total trading in the relevant area (within the meaning of article 14(5A) of MiFIR) in a specific financial instrument.180

[Note: article 2(1)(12) and (12A) of MiFIR]180