POLAND Law and Practice Contributed by: Wojciech Ługowski, Lawarton Lugowski Kapica Spolka Komandytowa
6.5 Order Handling Rules Order handling rules apply to regulated finan - cial markets, including securities and derivatives trading under MiFID II regulations. These rules ensure execution at the best terms, transpar - ency and fair client treatment. Brokers must prioritise price, speed and cost while avoiding conflicts of interest. KNF also sets specific order-handling rules for P2P trading platforms are growing but remain smaller than traditional exchanges. They are mainly used by individual traders and offer pri - vacy and diverse payment methods but have lower liquidity. P2P trading reduces intermediaries, prompt - ing fintechs to adopt hybrid models. Regulators face AML/CFT and investor protection chal - lenges, as many P2P platforms lack KYC over - sight, increasing risks. While P2P crypto trading influenced DeFi regulations, its market impact remains limited. As regulations evolve, its remit may expand. 6.7 Rules of Payment for Order Flow Payment for order flow (PFOF) is restricted under MiFID II regulations, as it conflicts with best exe - cution principles. Recent amendments introduce a complete phase-out by 30 June 2026. regulated markets, MTFs and OTFs. 6.6 Rise of Peer-to-Peer Trading Platforms PFOF has never been widely adopted in Poland, as KNF strictly enforces best execution rules. Polish brokers generally avoid PFOF, mean - ing the 2026 ban will have little impact on the domestic market.
significant regulatory developments in Poland and the EU more broadly. As mentioned in 6.2 Regulation of Different Asset Classes , the EU introduced MiCAR to reg - ulate emerging cryptocurrency exchanges, both centralised and decentralised. However, Poland is still working on the legislation to implement national rules and procedures. See 10 Blockchain . 6.4 Listing Standards Listing standards for shares, bonds and crypto- assets differ significantly. Listing financial instru - ments on trading venues is highly regulated mainly by the Act on Public Offering, Conditions Governing the Introduction of Financial Instru - ments to Organised Trading and on Public Com - panies, the Act on Trading in Financial Instru - ments and the Act on Supervision on Securities Market. Polish legislation requires trading venue opera - tors to have transparent rules for trading, admis - sion of financial instruments to trading and access to the trading venue. The criteria used on their systems must be objective. Furthermore, the trading rules must ensure fair and orderly trading. While traditional financial instruments are sub - ject to well-established regulatory frameworks, crypto-assets are governed under the EU’s MiCAR, which introduce a new set of listing requirements. As Poland has yet to finalise the national implementation of MiCAR, crypto-asset listing standards remain in transition, with further details expected upon full regulatory adoption.
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