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No. 372/2024
11 March 2024

RULES

on organisational requirements for trading venues.

Article 1 Scope.

These rules apply to the further implementation of Act No. 115/2021 on markets for financial instruments with regard to:

• The content and form of the description of the operation of a multilateral trading facility pursuant to Article 28 of the Act.

• Notifications by domestic securities firms of services and activities without a branch and the establishment of a branch and/or the use of a tied agent in another Member State, pursuant to Articles 62 and 63 of the Act.

• System resilience and automatic suspension of trading, pursuant to Article 83 of the Act.

• Algorithmic trading, pursuant to Article 85 of the Act.

• Direct electronic access, pursuant to Article 86 of the Act.

• Fee arrangements, pursuant to Article 87 of the Act.

• Co-location, pursuant to Article 89 of the Act.

• Tick sizes, pursuant to Article 90 of the Act.

• Synchronisation of business clocks, pursuant to Article 91 of the Act.

• The obligation to provide reference data for financial instruments, pursuant to Article 27. MiFIR.

Article 2 References.

Direct electronic connection: References in these rules to direct electronic connection pursuant to points (a), (b) and (g) of the second paragraph of Article 48 of Directive 2014/65/EU shall be understood as references to direct electronic access pursuant to Article 86 of Act No. 115/2021 on markets for financial instruments.

Categories of financial instruments pursuant to Section C of Annex I to MiFID II: References in these rules to categories of financial instruments pursuant to Section C of Annex I to Directive 2014/65/EU shall be understood as references to categories of financial instruments pursuant to items 2, 6 and 17 of the first paragraph of Article 4 of Act No. 115/2021 on markets for financial instruments.

Arrangements and procedures pursuant to Article 31. MiFID II: References in these rules to arrangements and procedures for monitoring trading as required in Article 31 of Directive 2014/65/EU shall be understood as references to arrangements and procedures pursuant to Article 56 of Act No. 115/2021 on markets for financial instruments.

Arrangements and procedures pursuant to the fourth paragraph of Article 18. MiFID II: References in these rules to arrangements and procedures for monitoring trading as required in the fourth paragraph of Article 18 of Directive 2014/65/EU shall be understood as references to arrangements and procedures pursuant to item 5 of the first paragraph of Article 28 of Act No. 115/2021 on markets for financial instruments.

MiFID I: References in these rules to provisions of Directive 2004/39/EC shall be understood as references to provisions of Act No. 108/2007 on securities trading which implemented that Directive.

Paired brokerage transactions: References in these rules to paired brokerage transactions pursuant to the seventh paragraph of Article 20 of Directive 2014/65/EU shall be understood as references to matched principal trading pursuant to the eighth paragraph of Article 30 of Act No. 115/2021 on markets for financial instruments.

Compliance with Article 48. MiFID II: References in these rules to compliance with the provisions of Article 48 of Directive 2014/65/EU shall be understood as references to compliance with Articles 83-89 of Act No. 115/2021 on markets for financial instruments.

Liquidity provision pursuant to the second paragraph of Article 48. MiFID II: References in these rules to liquidity provision in accordance with the second paragraph of Article 48 of Directive 2014/65/EU shall be understood as references to Article 84 of Act No. 115/2021 on markets for financial instruments.

Regulation (EU) 596/2014: The reference in Article 22 of Regulation (EU) 2017/584 to Regulation (EU) 596/2014 shall be understood as a reference to Act No. 60/2021 on measures against market abuse.

Rules and procedures pursuant to Article 32. MiFID II: References in these rules to arrangements and procedures for the temporary suspension of trading in financial instruments and their removal from trading as required in Article 32 of Directive 2014/65/EU shall be understood as references to rules and procedures pursuant to Article 57 of Act No. 115/2021 on markets for financial instruments.

Rules and procedures ensuring compliance with Articles 24, 25, 27 and 28. MiFID II: References in these rules to rules and procedures ensuring compliance with the provisions of Articles 24, 25, 27 and 28 of Directive 2014/65/EU shall be understood as references to rules and procedures pursuant to Articles 33-41 and 44-48 of Act No. 115/2021 on markets for financial instruments.

Operating licence pursuant to Title III of MiFID II: References in these rules to an operating licence in accordance with Title III of Directive 2014/65/EU shall be understood as references to an operating licence as a regulated market pursuant to Act No. 115/2021 on markets for financial instruments.

Operating licence pursuant to CRD IV: References in these rules to credit institutions with an operating licence pursuant to Directive 2013/36/EU shall be understood as references to credit institutions with an operating licence pursuant to Act No. 161/2002 on financial undertakings.

Obligations pursuant to or compliance with MiFID II: References in these rules to obligations pursuant to or compliance with Directive 2014/65/EU shall be understood as references to obligations pursuant to or compliance with Act No. 115/2021 on markets for financial instruments.

Conditions of Articles 48 and 49 of MiFID II: By reference to the conditions laid down in Articles 48 and 49 of Directive 2014/65/EU is meant the conditions laid down in Articles 83-90 of Act No. 115/2021 on markets for financial instruments.

Register of agents pursuant to the third paragraph of Article 29. MiFID II: References in these rules to the register of agents in accordance with the third paragraph of Article 29 of Directive 2014/65/EU shall be understood as references to the register of tied agents pursuant to the sixth paragraph of Article 50 of Act No. 115/2021 on markets for financial instruments.

Obligations pursuant to Article 47. MiFID II: References in these rules to the obligations referred to in points (b), (c) and (e) of the first paragraph of Article 47 of Directive 2014/65/EU shall be understood as a reference to the obligations pursuant to Article 78 of Act No. 115/2021 on markets for financial instruments.

Instructions where discretion is exercised pursuant to the sixth paragraph of Article 20. MiFID II is new: References to instructions where discretion is exercised pursuant to the sixth paragraph of Article 20 of Directive 2014/65/EU shall be understood as references to discretion in the execution of instructions pursuant to the sixth paragraph of Article 30 of Act No. 115/2021 on markets for financial instruments.

Notification of cross-border transactions: References in these rules to notifications of cross-border transactions in accordance with the 2nd, 3rd or 5th paragraph of Article 34 or the 2nd, 7th or 10th paragraph of Article 35 of Directive 2014/65/EU shall be understood as references to such notifications pursuant to Articles 61, 62 or 63 of Act No. 115/2021 on markets for financial instruments.

Notification of arrangements to facilitate access to a multilateral trading facility or an organised trading facility: References to notifications of arrangements to facilitate access to a multilateral trading facility or an organised trading facility in accordance with the 7th paragraph of Article 34 of Directive 2014/65/EU shall be understood as references to notifications pursuant to Article 64 of Act No. 115/2021 on markets for financial instruments.

Information relating to the requirements of the 3rd paragraph of Article 19. MiFID II: References in these rules to information relating to the requirements of the 3rd paragraph of Article 19 of Directive 2014/65/EU shall be understood as references to information relating to the requirements of items 1-3 of the 1st paragraph of Article 29 of Act No. 115/2021 on markets for financial instruments.

Market maker: References in these rules to market makers pursuant to item 7 of the 1st paragraph of Article 5 of Directive 2014/65/EU shall be understood as references to market makers pursuant to item 67 of the 1st paragraph of Article 4 of Act No. 115/2021 on markets for financial instruments.

Market making on an independent basis: Reference to market making on an organised trading facility on an independent basis in accordance with the 5th paragraph of Article 20 of Directive 2014/65/EU shall be understood as a reference to market making pursuant to the 5th paragraph of Article 30 of Act No. 115/2021 on markets for financial instruments.

Freedom to provide services and right of establishment pursuant to MiFID II: References in these rules to the freedom to provide investment services, the freedom to carry on investment activities and the right of establishment in accordance with the provisions of Directive 2014/65/EU shall be understood as the freedom to provide investment services, the freedom to carry on investment activities and the right of establishment pursuant to the provisions of Act No. 115/2021 on markets for financial instruments.

Article 3. Implementation of regulations.

With these rules, the following regulations of the Commission (EU) shall enter into force in this country, as published in the EEA Supplement to the Official Journal of the European Union No. 72 of 11 November 2021, pp. 168-185 and 210-215, No. 78 of 9 December 2021, pp. 13-19, No. 8 of 10 February 2022, pp. 8-12, and No. 20 of 24 March 2022, pp. 12-18 and 29-68, cf. Decision of the Joint EEA Committee No. 85/2019 as published in the EEA Supplement to the Official Journal of the European Union No. 88 of 31 October 2019, pp. 7-19, cf. also Protocol 1 on horizontal adaptation to the Agreement on the European Economic Area, cf. the Act on the European Economic Area, No. 2/1993, in which the Protocol is incorporated into law:

• Commission Implementing Regulation (EU) 2016/824 of 25 May 2016 on implementing technical standards with regard to the content and format of the description of the functioning of multilateral trading facilities and organised trading facilities and the notification to the European Securities and Markets Authority pursuant to Directive 2014/65/EU of the European Parliament and of the Council on markets in financial instruments.

• Commission Delegated Regulation (EU) 2017/573 of 6 June 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council on markets in financial instruments with regard to regulatory technical standards on requirements to ensure that co-location services and fee arrangements are fair and non-discriminatory.

• Commission Delegated Regulation (EU) 2017/574 of 7 June 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council with regard to regulatory technical standards for the level of accuracy of business clocks.

• Commission Delegated Regulation (EU) 2017/584 of 14 July 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council with regard to regulatory technical standards specifying organisational requirements for trading venues.

• Commission Delegated Regulation (EU) 2017/585 of 14 July 2016 supplementing Regulation (EU) No. 600/2014 of the European Parliament and of the Council with regard to regulatory technical standards for data standards and formats for reference data on financial instruments and technical measures in relation to arrangements established by the European Securities and Markets Authority and competent authorities.

• Commission Delegated Regulation (EU) 2017/588 of 14 July 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council with regard to regulatory technical standards on the tick size regime for shares, depositary receipts and exchange-traded funds.

• Commission Delegated Regulation (EU) 2017/1018 of 29 June 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council on markets in financial instruments with regard to regulatory technical standards specifying the information to be notified by investment firms, market operators and credit institutions.

• Commission Implementing Regulation (EU) 2017/2382 of 14 December 2017 laying down implementing technical standards with regard to standard forms, templates and procedures for the transmission of information in accordance with Directive 2014/65/EU of the European Parliament and of the Council.

These rules also give effect in this country to Commission Delegated Regulation (EU) 2019/443 of 13 February 2019 amending Delegated Regulation (EU) 2017/588 as regards the possibility to adjust the average daily number of transactions for a share where the trading venue with the highest turnover in that share is located outside the Union, as published in the EEA Supplement to the Official Journal of the European Union No. 34 of 25 May 2022, pp. 11-12, cf. Decision of the EEA Joint Committee No. 160/2020, cf. also Protocol 1 on horizontal adaptations to the Agreement on the European Economic Area, cf. the Act on the European Economic Area, No. 2/1993, in which the Protocol is incorporated.

These rules also give effect in this country to Commission Delegated Regulation (EU) 2023/960 of 1 February 2023 amending the regulatory technical standards laid down in Delegated Regulation (EU) 2017/588 as regards the annual date of application of the calculations of the average daily number of transactions for shares, depositary receipts and exchange-traded funds for the purposes of tick sizes, as published in the EEA Supplement to the Official Journal of the European Union No. 11 of 1 February 2024, pp. 779-780, cf. Decision of the EEA Joint Committee No. 283/2023, cf. also Protocol 1 on horizontal adaptations to the Agreement on the European Economic Area, cf. the Act on the European Economic Area, No. 2/1993, in which the Protocol is incorporated.

Article 4. Entry into force.

These rules, which are laid down pursuant to the authorisation in the fifth paragraph of Article 28, the fifth paragraph of Article 62, the eighth paragraph of Article 63, the fifth paragraph of Article 83, the third paragraph of Article 85, the fourth paragraph of Article 86, the fifth paragraph of Article 87, the second paragraph of Article 89, the second paragraph of Article 90, the second paragraph of Article 91 and item 21 of Article 145 of Act No. 115/2021 on markets for financial instruments, enter into force immediately. At the same time, Rules No. 852/2022 on organisational requirements for trading venues are repealed.

Central Bank of Iceland, 11 March 2024.

	Ásgeir Jónsson Governor of the Central Bank.	Rannveig Júníusdóttir Managing Director.

Section B - Published: 25 March 2024