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prepared by the European Commission, published in the ESMA Q&A tool · not legislation · published 3 Mar 2026 [Answer Published]","attribution":{"prepared_by":"European Commission","published_by":"ESMA","published_in":"ESMA Q&A tool","document_type":"qa_answer","legal_nature":"not_legislation","addressees":"not stated in the document","dates":{"published_on":"2026-03-03","question_submitted_on":"2025-06-03","locators":{"published_on":"ESMA Q&A Excel export ESMA_QA_2560, column 'Esma responses', date line","question_submitted_on":"ESMA Q&A Excel export ESMA_QA_2560, column 'Date of submission'"}},"adoption":null}},"provenance":{"official_url":"https://www.esma.europa.eu/publications-data/questions-answers/2560","check":{"result":"matched","checked_at":"2026-10-26","against":"the ESMA publication"},"repo_path":"spaces/mifir/level-3/q-and-a/esma/esma-qa-2560-payment-for-order-flow-pfof-prohibition-scope-for-rebates.md","body_sha256":"71be0aea3efb88a8508afadc9a42a15b046de8033f71ecea9778571e1598de49"},"units":[],"markdown":"---\ntitle: \"ESMA Q&A 2560 — Q&A — Payment for order flow (PFOF) prohibition: scope [Answer Published]\"\nshortTitle: \"ESMA Q&A 2560 — Q&A — Payment for order flow (PFOF) prohibition: scope [Answer Published]\"\nanswer_id: ESMA_QA_2560\ntopic: \"Inducements\"\nstatus: \"Answer Published\"\ntype: qa\ninstrument_type: qa\nauthority: ESMA\nbinding: false\nbinding_character: non_binding\nlegal_status: in_force\nregulation: \"MiFIR\"\nmifir_level3: true\nmica_level2: false\nlegal_basis: \"Article 39a, Paragraph 1\"\ndate: 3 June 2025\nsource_link: https://www.esma.europa.eu/publications-data/questions-answers/2560\nlifecycle: \"Answer Published\"\ntext_version: \"ESMA Q&A register, 3 June 2025\"\nsource_url: \"https://www.esma.europa.eu/publications-data/questions-answers/2560\"\ncheck_status: matched\nverified: true\nlast_checked: 2026-10-26\nchecked_against: \"the ESMA publication\"\nsource:\n  prepared_by: \"European Commission\"\n  published_by: \"ESMA\"\n  published_in: \"ESMA Q&A tool\"\n  evidence:\n    prepared_by: \"Answer provided by the European Commission\"\n    locator: \"ESMA Q&A entry ESMA_QA_2560, first line of the answer field\"\ndocument_type: \"qa_answer\"\nlegal_nature: \"not_legislation\"\naddressees: \"not stated in the document\"\ndates:\n  published_on: \"2026-03-03\"\n  question_submitted_on: \"2025-06-03\"\n  locators:\n    published_on: \"ESMA Q&A Excel export ESMA_QA_2560, column 'Esma responses', date line\"\n    question_submitted_on: \"ESMA Q&A Excel export ESMA_QA_2560, column 'Date of submission'\"\nlifecycle_label: \"Answer Published\"\n---\n\n**Answer prepared by the European Commission, published in the ESMA Q&A tool · not legislation · published 3 Mar 2026 [Answer Published]**\n\n*Answer Published · ESMA Q&A register, 3 June 2025 · Checked against the ESMA publication on 26 Oct 2026 · [Official source](https://www.esma.europa.eu/publications-data/questions-answers/2560)*\n\n| | |\n|---|---|\n| **Full title** | ESMA Q&A 2560 — Q&A — Payment for order flow (PFOF) prohibition: scope \\[Answer Published\\] |\n| **Prepared by** | European Commission |\n| **Published by** | ESMA, in the ESMA Q&A tool |\n| **Reference** | ESMA_QA_2560 |\n| **Document type** | Q&A |\n| **Legal nature** | Not legislation |\n| **Addressees** | Not stated in the document |\n| **Dates** | Published 3 March 2026; question submitted 3 June 2025 |\n| **Legal basis** | Article 39a, Paragraph 1 |\n| **Related instruments** | None recorded |\n| **Text on this page** | Word for word — the full text of the ESMA publication |\n\n**Payment for order flow (PFOF) prohibition: scope for rebates or discounts on transaction fees or any other benefits for investment firms acting on behalf of retail clients or opt-in professional clients**\n\n### Question\n\nWhich type of rebates or discounts on transaction fees or any other benefits for investment firms acting on behalf of retail clients or opt-in professional clients are out of the scope of the prohibition to receive payment for order flow specified in Article 39a MiFIR?\n\n***\n\n### Answer\n\nAnswer provided by the European Commission\n\nAccording to Article 39a (1), second subparagraph of MiFIR, rebates or discounts on the transaction fees of execution venues, which are permitted under the approved and public tariff structure of a trading venue in the Union or of a third-country trading venue, which exclusively benefit the client, and which do not result in a monetary benefit to the investment firm, are out-of-the scope of the prohibition to receive PFOF. Those tariff structures should however comply with Article 5 of Commission Delegated Regulation (EU) 2017/573, which sets out requirements to ensure fair and non-discriminatory fee structures2.\n\n(2) Trading venues shall not offer their members, participants or clients a fee structure whereby, once their trades exceed a given threshold, all of their trades benefit from a lower fee for a set period, including those trades that were executed prior to reaching that threshold.” Article 5 of Commission Delegated Regulation (EU) 2017/573 of 6 June 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council on markets in financial instruments with regard to regulatory technical standards on requirements to ensure fair and non-discriminatory co-location services and fee structure“.\n\nDisclaimer:\n\nThe answers clarify provisions already contained in the applicable legislation. They do not extend in any way the rights and obligations deriving from such legislation nor do they introduce any additional requirements for the concerned operators and competent authorities. The answers are merely intended to assist natural or legal persons, including competent authorities and Union institutions and bodies in clarifying the application or implementation of the relevant legal provisions. Only the Court of Justice of the European Union is competent to authoritatively interpret Union law. The views expressed in the internal Commission Decision cannot prejudge the position that the European Commission might take before the Union and national courts.\n\n***\n\n**Source:** [ESMA original document](https://www.esma.europa.eu/publications-data/questions-answers/2560)\n"}