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🔗 Back to Summary. 🇫🇷 French Version: 2017R0584_FR.20. Back to Summary of LVL1. Open the PDF. Direct link to EUR-LEX.
Article 19 – Mechanisms to manage volatility ⬅️ | ➡️ Article 21 – Pre-determination of the conditions to provide direct electronic access
Références LVL1 <=> LVL2
Level 1 reference(s): 2014L0065_EN.48 > 6, 2014L0065_EN.48 > 4
Article 20 - Pre-trade and post-trade controls
1.
Trading venues shall carry out the following pre-trade controls adapted for each financial instruments traded on them:
(a)
price collars, which automatically block orders that do not meet pre-set price parameters on an order-by-order basis;
(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;
(c)
maximum order volume, which automatically prevents orders with an uncommonly large order size from entering the order book.
2.
The pre-trade controls laid down in paragraph 1 shall be designed so as to ensure that:
(a)
their automated application has the ability to readjust a limit during the trading session and in all its phases;
(b)
their monitoring has a delay of no more than five seconds;
(c)
an order is rejected once a limit is breached;
(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.
Trading venues may establish the post-trade controls that they deem appropriate on the basis of a risk assessment of their members’ activity.