BA-405 · Lesson 8 of 9

Initiating Participant and Intermediary Participant

Learn what the broker does when accompanying an issuer to BIMx, how its role differs on the Regulated Market and the MTF, and which responsibilities remain with the issuer.

11 min read Professional The Broker's Role in Issuer Admission
Track contents BIMx Trading Infrastructure
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Two roles, two markets

Initiating Participant (Regulated Market)Intermediary Participant (MTF)
Is it mandatory?No, for shares; yes, for municipal bondsYes
Length of the relationshipUntil the first trading day is setFor as long as the securities trade
Contact personsThe issuer'sAt least one of the two comes from the Participant
Documents signedAssists with the fileSigns the Memorandum together with the issuer

What the Initiating Participant does

  • checks the eligibility requirements in the Rules together with the issuer;
  • structures and reviews the file before submission for compliance with the BIMx Rules;
  • coordinates clarifications and additions with the Listing and Operations Department;
  • sends the requested answers and documents within the deadlines set by BIMx;
  • acts as the operational link with BIMx until the first trading day is set.

What the Intermediary Participant does on the MTF

  1. Stage 1: Agreement in PrincipleThe AP application, the decision of the statutory body, the extract from the Register of Legal Entities, the articles of association, the Memorandum signed by both parties, proof of payment of the processing fee, and the issuer–Participant agreement.
  2. Stage 2: formal admissionThe final application, the DCU documents or confirmation, the financial statements, the final Memorandum, the CNPF certificate, the contact persons' declaration, and the BIMx–Issuer Agreement.
  3. After admissionMaintains the agreement with the issuer and provides one of the contact persons with BIMx for as long as the securities trade.

Fees and estimates

Fees differ by market (Regulated Market or MTF) and by instrument type, according to the BIMx Schedule of Fees and Commissions in force. At the Participant's request, BIMx can provide an estimate of admission costs for a specific issuer.

Key takeaways

  • On the Regulated Market, the broker can act as Initiating Participant; for municipal bonds, this role is mandatory.
  • On the MTF, an agreement with an Intermediary Participant is mandatory for as long as the securities trade.
  • The Initiating Participant checks eligibility, structures the file, and coordinates clarifications with BIMx.
  • Responsibility for the content of the documentation remains with the issuer.
  • On request, BIMx can provide an estimate of admission costs for a specific issuer.

Check your knowledge

Answer all the questions. If you answer all of them correctly, the lesson is marked as completed automatically.

Question 1 of 3For which type of instrument is an Initiating Participant mandatory on the Regulated Market?

Explanation: For shares, the issuer may also apply directly; for municipal bonds, the Rules require the file to be submitted through an Initiating Participant.

Question 2 of 3How long does the relationship between the issuer and the Intermediary Participant on the MTF last?

Explanation: The agreement with the Intermediary Participant is concluded and maintained for as long as the securities trade on the MTF.

Question 3 of 3An issuer's file was submitted through the Initiating Participant. Who is responsible for the content of the documentation?

Explanation: Responsibility for the content of the documentation and ongoing disclosure obligations remains with the issuer.

Finished the lesson?Mark it as completed to track your progress.

Educational material only. It does not constitute investment, legal or tax advice. Numerical examples are hypothetical.