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In this act Article 20 of 24

Article 20 — Pre-trade and post-trade controls (Article 48(4) and (6) of Directive 2014/65/EU)

Financial servicesLevel 2RTSMiFID IIIn forceOfficial source

20(1)

1.Trading venues shall carry out the following pre-trade controls adapted for each financial instruments traded on them:

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20(1)(a)
(a)price collars, which automatically block orders that do not meet pre-set price parameters on an order-by-order basis;
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20(1)(b)
(b)maximum order value, which automatically prevents orders with uncommonly large order values from entering the order book by reference to notional values per financial instrument;
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20(1)(c)
(c)maximum order volume, which automatically prevents orders with an uncommonly large order size from entering the order book.
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20(2)

2.The pre-trade controls laid down in paragraph 1 shall be designed so as to ensure that:

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20(2)(a)
(a)their automated application has the ability to readjust a limit during the trading session and in all its phases;
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20(2)(b)
(b)their monitoring has a delay of no more than five seconds;
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20(2)(c)
(c)an order is rejected once a limit is breached;
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20(2)(d)
(d)procedures and arrangements are in place to authorise orders above the limits upon request from the member concerned. Such procedures and arrangements shall apply in relation to a specific order or set of orders on a temporary basis in exceptional circumstances.
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20(3)

3.Trading venues may establish the post-trade controls that they deem appropriate on the basis of a risk assessment of their members' activity.

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