Article 18
Prevention of disorderly trading conditions
1. Trading venues shall have at least the following arrangements in place to prevent disorderly trading and breaches of capacity limits:
(a) |
limits per member of the number of orders sent per second; |
(b) |
mechanisms to manage volatility; |
(c) |
pre-trade controls. |
2. For the purposes of paragraph 1, trading venues shall be able to:
(a) |
request information from any member or user of sponsored access on their organisational requirements and trading controls; |
(b) |
suspend a member's or a trader's access to the trading system at the initiative of the trading venue or at the request of that member, a clearing member, the CCP, where provided for in the CCP's governing rules, or the competent authority; |
(c) |
operate a kill functionality to cancel unexecuted orders submitted by a member, or by a sponsored access client under the following circumstances:
|
(d) |
cancel or revoke transactions in case of malfunction of the trading venue's mechanisms to manage volatility or of the operational functions of the trading system; |
(e) |
balance entrance of orders among their different gateways, where the trading venue uses more than one gateway in order to avoid collapses. |
3. Trading venues shall set out policies and arrangements in respect of:
(a) |
mechanisms to manage volatility in accordance with Article 19; |
(b) |
pre-trade and post-trade controls used by the venue and pre-trade and post-trade controls necessary for their members to access the market; |
(c) |
members' obligation to operate their own kill functionality; |
(d) |
information requirements for members; |
(e) |
suspension of access; |
(f) |
cancellation policy in relation to orders and transactions including:
|
(g) |
order throttling arrangements including:
|
4. Trading venues shall make public their policies and arrangements set out in paragraphs 2 and 3. That obligation shall not apply with regard to the specific number of orders per second on pre-defined time intervals and the specific parameters of their mechanisms to manage volatility.
5. Trading venues shall maintain full records of their policies and arrangements under paragraph 3 for a minimum period of five years.