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Status: Please note you should read all Brexit changes to the FCA Handbook and BTS alongside the main FCA transitional directions. Where these directions apply the 'standstill', firms have the choice between complying with the pre-IP completion day rules, or the post-IP completion day rules. To see a full list of Handbook modules affected, please see Annex B to the main FCA transitional directions.

You are viewing the version of the document as on 2021-01-01.

Status: In this content, we have included all amendments made by EU exit-related instruments up to end September 2020. There will be more amendments to be made later this year, further to the September QCP.

Article 8 Testing of the trading systems(Article 48(1) of Directive 2014/65/EU)

  1. (1)

    Trading venues shall, prior to deploying or updating a trading system, make use of clearly defined development and testing methodologies which ensure at least that:

    1. (a)

      the trading system does not behave in an unintended manner;

    2. (b)

      the compliance and risk management controls embedded in the systems work as intended, including the automatic generation of error reports;

    3. (c)

      the trading system can continue to work effectively in case of a significant increase of the number of messages managed by the system.

  2. (2)

    Trading venues shall be able to demonstrate at all times that they have taken all reasonable steps to avoid that their trading systems contribute to disorderly trading conditions.