LITHUANIA Law and Practice Contributed by: Donatas Šliora and Marius Matiukas, ADON legal
• the Law on Consumer Credit – lending to natural persons for consumption purposes; and • the Law on Real Estate-Related Credit – lend - ing to natural persons where the obligations are secured by a right related to immovable property (mortgage on immovable property, etc). The laws regulate the activities of peer-to-peer lending platform operators and the procedure for inclusion in the public list of peer-to-peer lending platform operators. Creditworthiness of the borrower must be assessed and the principles of responsible lend - ing should be followed (just as for other con - sumer credit providers). Thus, the peer-to-peer lending operator must collect information for creditworthiness assessment, and must verify the information provided by the borrower in accessible databases or gather other support - ing evidence. Typically, such platforms also provide “second- ary market” function – ie, original investors may transfer their investments (claim rights) to other investors. 6.7 Rules of Payment for Order Flow Payment for order flow was a controversial issue for some time. However, the latest amendments to MiFIR generally introduced an EU-wide ban on payment for order flow from 2026. 6.8 Market Integrity Principles EU’s Regulation on Market Abuse (MAR) is the main regulatory instrument addressing market abuse, including insider dealing, the unlaw - ful disclosure of inside information and market manipulation.
The Law on Securities, implementing EU’s Directive on the harmonisation of transparency requirements in relation to information about issuers whose securities are admitted to trad - ing on a regulated market, provides additional disclosure requirements for listed companies. The requirements of the EU’s Regulation on the prospectus to be published when securities are offered to the public or admitted to trading on a regulated market are also directly applicable. The Bank of Lithuania has issued guidelines on disclosure of information, providing detailed guidance on compliance with market integrity requirements. In addition, MiCA also provides for directly appli - cable market integrity rules for trading in crypto- assets. 7. High-Frequency and Algorithmic Trading 7.1 Creation and Usage Regulations The legal framework for algorithmic trading is set out in the Law on Markets in Financial Instru - ments, transposing MiFID II. As for all other investment service providers operating under Lithuanian legislation, investment firms provid - ing services based on algorithmic trading must be licensed by the Bank of Lithuania. Brokers utilising algorithmic trading must notify the Bank of Lithuania of doing so, and should have vari - ous risk management procedures and business continuity measures in place. In the case of high-frequency trading (HFT), bro - kers are obligated to keep an accurate record of all orders placed by them in a time-sequential format – including cancelled orders, executed orders and quotes on trading venues – and
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