Article 20 Pre-trade and post-trade controls(Article 48(4) and (6) of Directive 2014/65/EU)

  1. (1)

    Trading venues shall carry out the following pre-trade controls adapted for each financial instruments traded on them:

    1. (a)

      price collars, which automatically block orders that do not meet pre-set price parameters on an order-by-order basis;

    2. (b)

      maximum order value, which automatically prevents orders with uncommonly large order values from entering the order book by reference to notional values per financial instrument;

    3. (c)

      maximum order volume, which automatically prevents orders with an uncommonly large order size from entering the order book.

  2. (2)

    The pre-trade controls laid down in paragraph 1 shall be designed so as to ensure that:

    1. (a)

      their automated application has the ability to readjust a limit during the trading session and in all its phases;

    2. (b)

      their monitoring has a delay of no more than five seconds;

    3. (c)

      an order is rejected once a limit is breached;

    4. (d)

      procedures and arrangements are in place to authorise orders above the limits upon request from the member concerned. Such procedures and arrangements shall apply in relation to a specific order or set of orders on a temporary basis in exceptional circumstances.

  3. (3)

    Trading venues may establish the post-trade controls that they deem appropriate on the basis of a risk assessment of their members' activity.