- ancillary services undertaking
means an undertaking, the principal activity of which consists of owning or managing property, managing data‐processing services, or a similar activity which is ancillary to the principal activity of one or more investment firms;
- ASA
means the value of assets that an investment firm safeguards and administers for clients, irrespective of whether assets appear on the investment firm’s own balance sheet or are in third‐party accounts;
- asset management company
means an asset management company as defined in point (19) of Article 4(1) of Regulation (EU) No 575/2013;
- AUM
means the value of assets that an investment firm manages for its clients under both discretionary portfolio management and nondiscretionary arrangements constituting investment advice of an ongoing nature;
- cash assimilated instrument
means a certificate of deposit, a bond, including a covered bond, or any other non‐subordinated instrument, which has been issued by an institution or an investment firm, for which the institution or investment firm has already received full payment and which is to be unconditionally reimbursed by the institution or investment firm at its nominal value;’;
- clearing member
means an undertaking established in a Member State which fulfils the definition in point (14) of Article 2 of Regulation (EU) No 648/2012 of the European Parliament and of the Council;
- client
means a client as defined in point (9) of Article 4(1) of Directive 2014/65/EU except that, for the purposes of Part Four of this Regulation, ‘client’ means any counterparty of the investment firm;
- CMG
means the amount of total margin required by a clearing member or qualifying central counterparty, where the execution and settlement of transactions of an investment firm dealing on own account take place under the responsibility of a clearing member or qualifying central counterparty;
- CMH
means the amount of client money that an investment firm holds, taking into account the legal arrangements in relation to asset segregation and irrespective of the national accounting regime applicable to client money held by the investment firm;
- CMV
means the net market value of the portfolio of transactions or securities legs subject to netting in accordance with Article 31, where both positive and negative market values are used in computing CMV;
- COH
means the value of orders that an investment firm handles for clients, through the reception and transmission of client orders and through the execution of orders on behalf of clients;
- commodity and emission allowance dealer
means an undertaking the main business of which consists exclusively of the provision of investment services or activities in relation to commodity derivatives or commodity derivative contracts referred to in points (5), (6), (7), (9) and (10), derivatives of emission allowances referred to in point (4), or emission allowances referred to in point (11) of Section C of Annex I to Directive 2014/65/EU;’;
- commodity derivatives
means commodity derivatives as defined in point (30) of Article 2(1) of Regulation (EU) No 600/2014;
- competent authority
means a competent authority as defined in point (5) of Article 3(1) of Directive (EU) 2019/2034;
- CON
means the exposures in the trading book of an investment firm to a client or a group of connected clients the value of which exceeds the limits in Article 37(1);
- consolidated basis
means on the basis of the consolidated situation;
- consolidated situation
means the situation that results from applying the requirements of this Regulation in accordance with Article 7 to a Union parent investment firm, Union parent investment holding company or Union parent mixed financial holding company as if that undertaking formed, together with all the investment firms, financial institutions, ancillary services undertakings and tied agents in the investment firm group, a single investment firm;
- credit institution
means an undertaking the business of which consists of any of the following:
- dealing on own account
means dealing on own account as defined in point (6) of Article 4(1) of Directive 2014/65/EU;
- derivatives
means derivatives as defined in point (29) of Article 2(1) of Regulation (EU) No 600/2014;
- DTF
means the daily value of transactions that an investment firm enters through dealing on own account or the execution of orders on behalf of clients in its own name, excluding the value of orders that an investment firm handles for clients through the reception and transmission of client orders and through the execution of orders on behalf of clients which are already taken into account in the scope of client orders handled;
- execution of orders on behalf of clients
means execution of orders on behalf of clients as defined in point (5) of Article 4(1) of Directive 2014/65/EU;
- financial holding company
means a financial holding company as defined in point (20) of Article 4(1) of Regulation (EU) No 575/2013;
- financial institution
means an undertaking other than a credit institution or investment firm, and other than a pure industrial holding company, the principal activity of which is to acquire holdings or to pursue one or more of the activities listed in points (2) to (12) and point (15) of Annex I to Directive 2013/36/EU, including a financial holding company, a mixed financial holding company, an investment holding company, a payment institution within the meaning of Directive (EU) 2015/2366 of the European Parliament and of the Council, and an asset management company, but excluding insurance holding companies and mixed‐activity insurance holding companies as defined in point (g) of Article 212(1) of Directive 2009/138/EC of the European Parliament and of the Council;
- financial instrument
means a financial instrument as defined in point (15) of Article 4(1) of Directive 2014/65/EU;
- financial sector entity
means a financial sector entity as defined in point (27) of Article 4(1) of Regulation (EU) No 575/2013;
- group of connected clients
means a group of connected clients as defined in point (39) of Article 4(1) of Regulation (EU) No 575/2013;
- initial capital
means initial capital as defined in point (18) of Article 3(1) of Directive (EU) 2019/2034;
- institution
means a credit institution authorised under Article 8 of Directive 2013/36/EU or an undertaking as referred to in Article 8a(3) thereof;’;
- investment advice
means investment advice as defined in point (4) of Article 4(1) of Directive 2014/65/EU;
- investment advice of an ongoing nature
means the recurring provision of investment advice as well as the continuous or periodic assessment and monitoring or review of a client portfolio of financial instruments, including of the investments undertaken by the client on the basis of a contractual arrangement;
- investment firm
means an investment firm as defined in point (1) of Article 4(1) of Directive 2014/65/EU which is authorised under that Directive but excludes credit institutions;’;
- investment firm group
means a group of undertakings which consists of a parent undertaking and its subsidiaries or of undertakings which meet the conditions set out in Article 22 of Directive 2013/34/EU of the European Parliament and of the Council, of which at least one is an investment firm and which does not include a credit institution;
- investment holding company
means a financial institution, the subsidiaries of which are exclusively or mainly investment firms or financial institutions, at least one of such subsidiaries being an investment firm, and which is not a financial holding company as defined in point (20) of Article 4(1) of Regulation (EU) No 575/2013;
- investment services and activities
means investment services and activities as defined in point (2) of Article 4(1) of Directive 2014/65/EU;
- long settlement transactions
means long settlement transactions as defined in point (2) of Article 272 of Regulation (EU) No 575/2013;
- management body
means a management body as defined in point (36) of Article 4(1) of Directive 2014/65/EU;
- margin lending transaction
means margin lending transactions as defined in point (10) of Article 3 of Regulation (EU) 2015/2365 of the European Parliament and of the Council;
- mixed financial holding company
means a mixed financial holding company as defined in point (15) of Article 2 of Directive 2002/87/EC of the European Parliament and of the Council;
- NPR
means the value of transactions recorded in the trading book of an investment firm;
- off‐balance‐sheet item
means any of the items referred to in Annex I to Regulation (EU) No 575/2013;
- own funds instruments
means own funds as defined in Article 9 of this Regulation, without applying the deductions referred to in point (i) of Article 36(1), point (d) of Article 56, and point (d) of Article 66 of Regulation (EU) No 575/2013;
- parent investment firm in a Member State
means a parent undertaking in a Member State that is an investment firm;’;
- parent undertaking
means a parent undertaking within the meaning of point (9) of Article 2 and Article 22 of Directive 2013/34/EU;
- participation
means participation as defined in point (35) of Article 4(1) of Regulation (EU) No 575/2013;
- portfolio management
means portfolio management as defined in point (8) of Article 4(1) of Directive 2014/65/EU;
- positions held with trading intent
means any of the following:
- profit
means profit as defined in point (121) of Article 4(1) of Regulation (EU) No 575/2013;
- QCCP
means a qualifying central counterparty as defined in point (88) of Article 4(1) of Regulation (EU) No 575/2013;
- qualifying holding
means a qualifying holding as defined in point (36) of Article 4(1) of Regulation (EU) No 575/2013;
- repurchase transaction
means a repurchase transaction as defined in point (9) of Article 3 of Regulation (EU) 2015/2365;
- SFT
means SFT as defined in point (11) of Article 3 of Regulation (EU) 2015/2365;
- subsidiary
means a subsidiary undertaking as defined in point (10) of Article 2 and within the meaning of Article 22 of Directive 2013/34/EU, including any subsidiary of a subsidiary undertaking of an ultimate parent undertaking;
- TCD
means the exposures in the trading book of an investment firm in instruments and transactions referred to in Article 25 giving rise to the risk of trading counterparty default;
- tied agent
means a tied agent as defined in point (29) of Article 4(1) of Directive 2014/65/EU;
- total gross revenue
means the annual operating income of an investment firm, in connection with the investment firm’s investment services and activities it is authorised to perform, including income stemming from interest receivable, from shares and other securities whether fixed yield or variable, from commission and fees, any gain and losses that the investment firm incurs on its trading assets, on assets held at fair value, or from hedging activities, but excluding any income which is not linked to the investment services and activities performed;
- trading book
means all positions in financial instruments and commodities held by an investment firm, either with trading intent or in order to hedge positions held with trading intent;
- Union parent investment firm
means an investment firm in a Member State which is part of an investment firm group and which has an investment firm or a financial institution as a subsidiary or which holds a participation in such an investment firm or financial institution, and which is not itself a subsidiary of another investment firm authorised in any Member State, or of an investment holding company or mixed financial holding company set up in any Member State;
- Union parent investment holding company
means an investment holding company in a Member State which is part of an investment firm group and which is not itself a subsidiary of an investment firm authorised in any Member State or of another investment holding company in any Member State;
- Union parent mixed financial holding company
means a parent undertaking of an investment firm group which is a mixed financial holding company as defined in point (15) of Article 2 of Directive 2002/87/EC.