European Brokerage · glossary
A situation where the firm’s own interest pulls against the client’s. Thalvia’s main one is its fee on every order, so it gains when clients trade more. MiFID II makes a firm prevent or manage each conflict, and tell the client only as a last resort. Clause 13.1 · Chapter 8
Explained in Chapter 8, Conflicts of Interest and Record-Keeping, of European Brokerage.
Also explained in Crypto-Asset Regulation.
Thalvia earns €2 on every order, so it gains when its clients trade more. That is a conflict of interest: the firm’s own interest pulls against the client’s. MiFID II makes a firm prevent or manage each conflict, and tell the client about it only as a last resort. It also makes the firm record calls and chats about orders, and report to the client on each trade.Read Chapter 8, Conflicts of Interest and Record-Keeping →
Chapter 1 and this glossary are open to everyone; the whole edition is free to read with a free account until 31 January, and it stays open to an account opened by then.Chapter 1 of European Brokerage and this glossary are free to read; the rest of the edition is in the Library, at €12 a month or €79 for a Year Pass.
Related terms
Where this term lives
This term is part of one complete fictional deal, with every document attached and a test after every chapter. Open European Brokerage → · All terms A–Z →