Where a firm engages in algorithmic trading to pursue a market making strategy, it must:
carry out market making continuously during a specified proportion of the trading venue’s trading hours so that it provides liquidity on a regular and predictable basis to that trading venue, except in exceptional circumstances;
enter into a binding written agreement with the trading venue which must specify the requirements for the purpose of (1); and
have in place effective systems and controls to ensure that it meets the obligations under the agreement in (2).
[Note: article 17(3) of MiFID, MiFID RTS 8 specifying the circumstances in which a person would be obliged to enter into the market making agreement referred to in MAR 7A.3.4R(2) and the content of such an agreement, including the specified proportion of the trading venue’s trading hours, and the situations constituting exceptional circumstances, referred to in MAR 7A.3.4R(1)]