Q&A · ESMA

Order to Trade Ratio (OTR)

Answered

Read the official text on the ESMA website(opens in a new tab)

AI-generated Summary

Where a member submits many orders without any trade, so the RTS 9 order-to-trade ratio cannot be computed, venues should treat the maximum ratio as breached once the orders exceed the number allowed per executed transaction (for example more than 10 orders with no trade where the limit is 10).

Details

Reference	ESMA_QA_1615
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 3.19

Provisions it relates to

Article 48 MiFID II · Systems resilience, circuit breakers and electronic trading
MiFID II
Inferred · 85%
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.