Q&A · ESMA

Trading venues - OTRs

Answered

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AI-generated Summary

Trading venues may set different maximum order-to-trade ratios for different categories of participants, such as market makers under agreements or schemes, provided the limits serve Article 48 MiFID II and rest on statistical analysis of each category's activity and the instruments' liquidity.

Details

Reference	ESMA_QA_1614
Issuer	ESMA
Published	7 Jul 2017
Answered	7 Jul 2017
Submitted	7 Jul 2017
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 3.18

Provisions it relates to

Article 48 MiFID II · Systems resilience, circuit breakers and electronic trading
MiFID II
Inferred · 90%
MiFID II (whole act)
Explicit reference

Documents it refers to

RTSIn forceExplicit reference
Commission Delegated Regulation (EU) 2017/566 of 18 May 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council on markets in financial instruments with regard to regulatory technical standards for the ratio of unexecuted orders to transactions in order to prevent disorderly trading conditions
European Commission · 31 Mar 2017 · EUR-Lex
AI summaryRTS 9 requiring trading venues operating electronic continuous auction order book, quote-driven or hybrid systems to calculate, at least at the end of each trading session, each member's ratio of unexecuted orders to transactions and to set maximum ratios to prevent disorderly trading conditions; voice trading systems are excluded.