A category of client under EU MiFID rules referring to sophisticated institutional entities. Eligible counterparties typically include large financial institutions, government bodies, pension funds and insurers that “by their very nature [have] the experience to assess investment risks”. Trades with eligible counterparties are treated on an “execution-only” basis with far fewer regulatory protections (e.g. firms need not provide the full suite of investor protections or disclosures that apply to retail clients).

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