> For the complete documentation index, see [llms.txt](https://initiativ.gitbook.io/initiativ/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://initiativ.gitbook.io/initiativ/mm_internal/1.-introduction/1.3-regulatory-framework.md).

# 1.3 Regulatory Framework

The Exchange operates within the following EU regulatory framework. The financial-markets regime applies across every market the Exchange lists; product-specific regimes vary by market.

#### MiFID II / MiFIR

The Exchange is authorised as a Multilateral Trading Facility (MTF) under MiFID II (Directive 2014/65/EU). Core obligations include pre-trade and post-trade transparency under MiFIR, organisational and system requirements for the venue, and transaction reporting to the relevant competent authorities. Venue-side order and system controls are governed by MiFID II Article 48 and RTS 7 (Section 5).

#### Transparency (RTS 2)

Pre-trade and post-trade transparency is governed by the MiFIR non-equity standard, RTS 2, which covers the non-equity instruments the Exchange lists, including emission allowances and derivatives. For derivatives, the pre-trade transparency carve-out under Article 8a supports request-for-quote execution (Section 4). Proposed derivatives-side RTS 2 amendments (March 2027) are tracked as a forward item.

#### EMIR (central clearing)

Because positions are cleared through a central counterparty, the Exchange operates within the EMIR framework governing CCPs and cleared instruments, including margin and default management (Section 8).

#### Market Abuse Regulation (MAR)

The Exchange operates a market abuse surveillance programme under MAR (Regulation (EU) No 596/2014). Prohibited conduct includes insider dealing, market manipulation (including spoofing, layering, wash trading, and banging the close), and unlawful disclosure of inside information. Self-trade prevention and related controls are grounded in MAR (Sections 5 and 10).

#### Product-specific and data protection regimes

Each market carries its own sectoral rules. For the initial market this includes the EU Emissions Trading System (Directive 2003/87/EC as amended) and the associated registry requirements (EUTL). The Exchange complies with the GDPR for the handling of personal data.