> 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/2.-participants-and-access/2.1-eligibility-criteria.md).

# 2.1 Eligibility Criteria

## MiFID Client Categorisation

The Exchange onboards Professional Clients and Eligible Counterparties only, as categorised under MiFID II. It does not onboard Retail Clients.

### Professional Clients “By Nature”

Applicants automatically qualify as Professional Clients if they are:

#### Authorised financial institutions

* Credit institutions
* Investment firms
* Other authorised or regulated financial institutions
* Insurance companies
* Collective investment schemes and their management companies
* Pension funds and their management companies
* Commodity and commodity derivatives dealers
* Locals
* Other institutional investors

#### Large undertakings meeting at least two of the following criteria

* Balance sheet total: €20,000,000
* Net turnover: €40,000,000
* Own funds: €2,000,000

### Professional Clients “On Request”

Clients not meeting the above criteria may request Professional treatment if they satisfy at least two of:

* Carried out transactions in significant size on the relevant market at an average frequency of 10 per quarter over the previous four quarters
* Financial instrument portfolio (including cash deposits) exceeds €500,000
* Works or has worked in the financial sector for at least one year in a professional position requiring knowledge of the transactions or services envisaged

{% hint style="info" %}
Clients requesting Professional treatment will be notified that they are waiving non-professional client protections and must sign a separate confirmation acknowledging this, in addition to accepting the rulebook.
{% endhint %}

## Third-country firms

At launch, the only third-country firms the Exchange admits as Members are firms established in Switzerland.

## Before trading

To trade, a Member needs an active Clearing Arrangement with a clearing member (Section 2.4). The bank and registry accounts that hold its cash and allowances for trading are arranged with its clearing member, not with the Exchange. The only account a Member gives the Exchange is a bank account for billing its fees, which is separate from trading (chapter 9).