Direct market access

The FCA glossary, noting Article 4(1)(41) of MiFID, defines direct electronic access as an arrangement where a member, participant or client of a trading venue lets someone else use its trading code so that person can send orders in a financial instrument electronically and directly to the venue. Direct market access is the case that uses the member's infrastructure or a connecting system the member provides. Sponsored access is the case that does not use that infrastructure. The firm that provides the access must assess the client, set trading and credit limits, and monitor the orders. A retail CFD platform is not DMA merely because it is electronic. DMA, in this definition, is access to a trading venue under a member's code.