Article 3 Exceptional circumstances

The obligation for investment firms to provide liquidity on a regular and predictable basis laid down in UK law corresponding to Article 17(3)(a) of Directive 2014/65/EU shall not apply in any of the following exceptional circumstances:

  1. (a)

    a situation of extreme volatility triggering volatility mechanisms for the majority of financial instruments or underlyings of financial instruments traded on a trading segment within the trading venue in relation to which the obligation to sign a market making agreement applies;

  2. (b)

    war, industrial action, civil unrest or cyber sabotage;

  3. (c)

    disorderly trading conditions where the maintenance of fair, orderly and transparent execution of trades is compromised, and evidence of any of the following is provided:

    1. (i)

      the performance of the trading venue's system being significantly affected by delays and interruptions;

    2. (ii)

      multiple erroneous orders or transactions;

    3. (iii)

      the capacity of a trading venue to provide services becoming insufficient;

  4. (d)

    where the investment firm's ability to maintain prudent risk management practices is prevented by any of the following:

    1. (i)

      technological issues, including problems with a data feed or other system that is essential to carry out a market making strategy;

    2. (ii)

      risk management issues in relation to regulatory capital, margining and access to clearing,

    3. (iii)

      the inability to hedge a position due to a short selling ban;

  5. (e)

    for non-equity instruments, during the suspension period referred to in Article 9(4) of Regulation (EU) No 600/2014 of the European Parliament and of the Council.