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 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.