Q&A · ESMA
Direct Electronic Access (DEA) and algorithmic trading - Trading functionalities with automated management of orders
Answered
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Functionalities that automatically manage orders after routing, for example redirecting unexecuted portions to other venues or slicing orders, are algorithmic trading (unlike simple order routers), so the orders must be flagged as such and the firm must meet Article 17 MiFID II and RTS 6.
Details
| Reference | ESMA_QA_1490 |
|---|---|
| Issuer | ESMA |
| Published | 15 Jul 2022 |
| Answered | 15 Jul 2022 |
| Submitted | 15 Jul 2022 |
| ESMA topics | Direct Electronic Access and algorithmic trading |
| Earlier Q&A document | ESMA 70-872942901-38 MiFID II MiFIR market structures Q&A, Q&A 3.33 |
Provisions it relates to
- Article 4 MiFID II · DefinitionsInferred · 80%
- Article 17 MiFID II · Algorithmic tradingInferred · 80%
- MiFID II (whole act)Explicit reference