Principal trading firms

Find out what permissions you'll need to apply to us for authorisation, how much you'll need to pay and what we expect to see in your application.

We refer to a person that acts for their own account as a principal trading firm (PTF).

This will apply to you if you deal for your account by:

  • buying
  • selling
  • subscribing for
  • underwriting

certain investments. The investments bought and sold are held by the firm, using its own money, rather than by an investor. 

Before applying to us for authorisation you need to read this page, our page for all wholesale markets firm applicants and our how to apply page for all firms.

Permissions you'll need

Typically, these are the permissions required:

  • making arrangements with a view to transactions
  • arranging deals in investments
  • dealing in investments as agent
  • dealing in investments as principal

The investment types you choose should correspond with your firm's business model. You'll need to show evidence of this in your regulatory business plan.

Application fee

Your fee falls into pricing category 6, which will be £10,000.

Find out more about your application fee, including how to pay.

Prudential requirements

All PTFs are:

  • subject to the UK implementation of MiFID
  • classed as non-small and non-interconnected (non-SNI) firms, meaning the Permanent Minimum Requirement (PMR) is £750,000

To decide what K-factors are needed for your business model, refer to MIFIDPRU (our prudential sourcebook for MiFID investment firms).

What to include

Before submitting your application through our Connect system, make sure you've prepared:

Page updates

: Information changed Minor amendment to the application fee section