Related provisions for MAR 7A.3.1

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MAR 7A.3.2RRP
1A firm must have in place effective systems and controls, suitable to the business it operates, to ensure that its trading systems:(1) are resilient and have sufficient capacity;(2) are subject to appropriate trading thresholds and limits; (3) prevent the sending of erroneous orders, or the systems otherwise functioning in a way that may create or contribute to a disorderly market; and (4) cannot be used for any purpose that is contrary to: (a) the Market Abuse Regulation;
MAR 7A.3.3RRP
A firm must:(1) have in place effective business continuity arrangements to deal with any failure of its trading systems; and(2) ensure that its systems are fully tested and properly monitored to ensure that it meets the requirements of (1) and of MAR 7A.3.2R. [Note: article 17(1) of MiFID and MiFID RTS 6 specifying the organisational requirements of investment firms engaged in algorithmic trading]
MAR 7A.3.4RRP
Where a firm engages in algorithmic trading to pursue a market making strategy, it must: (1) 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; (2) enter into a binding written agreement with the trading venue which must specify the requirements for the purpose of (1); and (3) have in place effective systems
MAR 7A.3.6RRP
A firm which is a member or participant of a trading venue must immediately notify the following if it is engaging in algorithmic trading:(1) the FCA; and (2) any competent authority of a trading venue in another EEA State where the firm engages in algorithmic trading. [Note: article 17(2) of MiFID]
MAR 7A.3.7RRP
A firm must provide the following, at the FCA’s request, within 14 days from receipt of the request: (1) a description of the nature of its algorithmic trading strategies; (2) details of the trading parameters or limits to which the firm’s system is subject; (3) evidence that MAR 7A.3.2R (systems and controls) and MAR 7A.3.3R (business continuity and system tests) are met; (4) details of the testing of the firm’s systems; (5) the records in MAR 7A.3.8R(2) (accurate and time-sequenced
MAR 7A.3.8RRP
A firm must:(1) arrange for records to be kept to enable it to meet MAR 7A.3.7R; and(2) (where it engages in a high-frequency algorithmic trading technique2) store, in the approved form, accurate and time-sequenced records of all its placed orders, including: (a) cancelled orders; (b) executed orders; and (c) quotations on trading venues. [Note: article 17(2) of MiFID and MiFID RTS 6 specifying the format and content of the approved form referred to in MAR 7A.3.8R(2), and
REC 2.2.4GRP
If a UK recognised body makes arrangements for functions to be performed on its behalf by persons who are authorised persons or recognised bodies, this does not alter its obligations under Regulation 6.[Note: MiFID RTS 7 contains further requirements for a trading venue whose systems enable algorithmic trading when outsourcing all or part of its functions]5
REC 2.2.6GRP
In determining whether the UK recognised body meets the recognition requirement in Regulation 6(3), the FCA3 may have regard to whether that body has ensured that the person who performs that function on its behalf:3(1) has sufficient resources to be able to perform the function (after allowing for any other activities);(2) has adequate systems and controls to manage that function and to report on its performance to the UK recognised body;(3) is managed by persons of sufficient
REC 2.2.7GRP
In determining whether a UK recognised body continues to satisfy the recognition requirements where it has made arrangements for any function to be performed on its behalf by any person , the FCA3 may have regard, in addition to any of the matters described in the appropriate section of this chapter, to the arrangements made to exercise control over the performance of the function, including:3(1) the contracts (and other relevant documents) between the UK recognised body and the
MAR 5.3A.2RRP
MAR 5.3A.1R applies in particular to systems and controls concerning:(1) the resilience of the firm’s trading systems;(2) its capacity to deal with peak order and message volumes;(3) the ability to ensure orderly trading under conditions of severe market stress;(4) the effectiveness of business continuity arrangements to ensure the continuity of the MTF’s services if there is any failure of its trading systems, including the testing of the MTF’s systems and controls;(5) the ability
MAR 5.3A.12GRP
Nothing in MAR 5.3A.11R prevents a firm:(1) adjusting its fees for cancelled orders according to the length of time the order was maintained;(2) calibrating its fees to each financial instrument to which they apply;(3) imposing a higher fee: (a) for placing an order which is cancelled than for an order which is executed;(b) on participants placing a high ratio of cancelled orders to executed orders; and(c) on a person operating a high-frequency algorithmic trading technique2,in
MAR 5.3A.13RRP
A firm must require members and participants of an MTF operated by it to flag orders generated by algorithmic trading in order for the firm to be able to identify the following:(1) different algorithms used for the creation of orders; and(2) the persons initiating those orders.[Note: article 48(10) of MiFID]
MAR 5A.5.2RRP
MAR 5A.5.1R applies in particular to systems and controls concerning: (1) the resilience of the firm’s trading systems;(2) its capacity to deal with peak order and message volumes;(3) the ability to ensure orderly trading under conditions of severe market stress;(4) the effectiveness of business continuity arrangements to ensure the continuity of the OTF’s services if there is any failure of its trading systems, including the testing of the OTF’s systems and controls;(5) the ability
MAR 5A.5.12GRP
Nothing in MAR 5A.5.11R prevents a firm:(1) adjusting its fees for cancelled orders according to the length of time for which the order was maintained;(2) calibrating its fees to each financial instrument to which they apply;(3) imposing a higher fee: (a) for placing an order which is cancelled than an order which is executed;(b) on participants placing a high ratio of cancelled orders to executed orders; and(c) on a person operating a high-frequency algorithmic trading technique2,in
MAR 5A.5.13RRP
A firm must require members and participants of an OTF operated by it to flag orders generated by algorithmic trading in order for the firm to be able to identify the following:(1) different algorithms used for the creation of orders; and (2) the persons initiating those orders. [Note: article 48(10) of MiFID]
REC 3.13.1-2RRP
3This section applies to a UK RIE where it is outsourcing its operational functions other than in relation to systems allowing or enabling algorithmic trading.
REC 3.13.1-1GRP
3The notification requirements in MiFID RTS 7, specifying organisational requirements of regulated markets allowing algorithmic trading through their systems, apply to a UK RIE where those operational functions are to be outsourced.
MAR 7A.2.1GRP
1The purpose of this chapter is to implement article 17 of MiFID, which imposes requirements on investment firms which are: (1) engaging in algorithmic trading; or(2) providing the service of DEA to a trading venue; or(3) providing the service of acting as a general clearing member for another person.[Note: related requirements imposed under article 48 of MiFID upon trading venues, in respect of members and participants engaging in algorithmic trading and providing the service
MAR 7A.1.2RRP
This chapter applies to a firm in relation to the following activities: (1) algorithmic trading (MAR 7A.3); (2) providing the service of DEA to a trading venue (MAR 7A.4); and (3) providing the service of acting as a general clearing member for another person (MAR 7A.5). [Note: this chapter transposes article 17 of MiFID, in respect of the types of firms referred to above. Parts 4 of the MiFI Regulations sets out equivalent requirements in respect of persons exempt under article
REC 2.5.1UKRP
Schedule to the Recognition Requirements Regulations, paragraphs 3 – 3H4Paragraph 3 – Systems and controls4(1)The [UK RIE] must ensure that the systems and controls, including procedures and arrangements,4 used in the performance of its functions and the functions of the trading venues it operates are adequate, effective4 and appropriate for the scale and nature of its business.(2)Sub-paragraph (1) applies in particular to systems and controls concerning - (a)the transmission
REC 2.5.4AGRP
4Where the MiFID/MiFIR Systems Regulations apply to a UK RIE, the FCA will, in assessing the UK RIE’s systems and controls, additionally have regard to the UK RIE’s satisfaction of any relevant requirements in those regulations. Of particular importance is MiFID RTS 7, which will apply where a trading venue allows or enables algorithmic trading.
EG 19.34.1RP
1The MiFI Regulations in part implement MiFID. The FCA has investigative and enforcement powers in relation to both criminal and non-criminal breaches of the MiFI Regulations (including requirements imposed on persons subject to the MiFI Regulations by MiFIR and any directly applicable EU regulation made under MiFIR or MiFID). The MiFI Regulations impose requirements on:(1) persons holding positions in relevant contracts for commodity derivatives trading on trading venues and
REC 2.1.4GRP
Location of recognition requirements and guidanceRecognition Requirements RegulationsSubjectSection in REC 2/other parts of the Handbook5Regulation 6Method of satisfying recognition requirements2.2Part I of the ScheduleUK RIE recognition requirementsParagraph 1Financial resources2.3Paragraph 2Suitability2.45Paragraphs 2A and 2BManagement Body2.4AParagraphs 3, 3A, 3B, 3C, 3D, 3E, 3G and 3H5Systems and controls, market making agreements, halting trading, direct electronic access,