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.

Article 10 Testing the members' algorithms to avoid disorderly trading conditions(Article 48(6) of Directive 2014/65/EU)

  1. (1)

    Trading venues shall require their members to certify that the algorithms they deploy have been tested to avoid contributing to or creating disorderly trading conditions prior to the deployment or substantial update of a trading algorithm or trading strategy and explain the means used for that testing.

  2. (2)

    Trading venues shall provide their members with access to a testing environment which shall consist of any of the following:

    1. (a)

      simulation facilities which reproduce as realistically as possible the production environment, including disorderly trading conditions, and which provide the functionalities, protocols and structure that allow members to test a range of scenarios that they consider relevant to their activity;

    2. (b)

      testing symbols as defined and maintained by the trading venue.

  3. (3)

    Trading venues shall ensure an effective separation of the testing environment from the production environment for the tests referred to in paragraph 1.