Special requirements for organised trading facilities

(1) The operator of an organised trading facility must take appropriate arrangements preventing the execution of client orders on the organised trading facility using the operator's own capital, or that of a member of the same corporate group.
(2) The operator of an organised trading facility may make use of matched principal trading within the meaning of section 2(29) for bonds, structured finance products, emission allowances and certain derivatives, where the client has consented to this. It may not make use of matched principal trading for derivatives that are subject to the clearing obligation under Article 4 of Regulation (EU) No 648/2012.
(3) Dealing on own account is permitted to an operator of an organised trading facility only insofar as it does not constitute matched principal trading within the meaning of section 2(29), and only in relation to public debt instruments for which there is no liquid market.
(4) An organised trading facility may not be operated within the same legal entity as a systematic internalisation business. An organised trading facility may not establish a connection to a systematic internaliser or another organised trading facility in a way that would enable orders in the organised trading facility to interact with the orders or quotes of the systematic internaliser or in the other organised trading facility.
(5) The operator of an organised trading facility may engage another investment services undertaking to carry out market making on the organised trading facility independently of the operator. Independent operation exists only where the investment services undertaking has no close link to the operator of the organised trading facility.
(6) The operator of an organised trading facility must exercise discretion in deciding on the execution of an order in the organised trading facility, where it decides whether to
1. place or withdraw an order, or
2. not to match a particular client order with other orders present in the system at a given time. In the case of the first sentence, number 2, a matching may be omitted only where this is compatible with any instructions of the client and with the obligation of best execution of client orders within the meaning of section 82. In a system that receives matching client orders, the operator may decide whether, when and to what extent it matches two or more orders within the system. In accordance with subsections (1), (2), (4) and (5), and without prejudice to subsection (3), the operator may, in a system through which transactions in non-equity instruments are arranged, facilitate negotiations between clients, so as to bring together two or more potentially compatible trading interests in a transaction. This obligation is without prejudice to sections 72 and 82 of this Act.
(7) The Bundesanstalt may, at any time, in particular upon an application for authorisation to operate, require the operator of an organised trading facility to provide a detailed explanation of why the organised trading facility does not correspond to, and cannot be operated as, a regulated market, multilateral trading facility or systematic internaliser. The explanation must include a detailed description of how discretion is exercised, in particular of when an order in the organised trading facility may be withdrawn, and when and how two or more matching client orders are matched within the organised trading facility. The operator of an organised trading facility must also provide the Bundesanstalt with information explaining its use of matched principal trading.
(8) The Bundesanstalt supervises trading by matching of orders by the operator of the organised trading facility, so as to ensure that it complies with the applicable requirements and that the trading by matching of orders it operates does not give rise to conflicts of interest between the operator and its clients.
(9) Section 63(1), (3) to (7) and (9), section 64(1), and sections 69, 70 and 82 apply correspondingly to transactions concluded via an organised trading facility.