ESMA_QA_1603

Status: ✅ Answer Published

Link to ESMA Q&A tool: https://www.esma.europa.eu/publications-data/questions-answers/1603

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Regulatory Context

Regulation : MIF2

Level 1 Regulation: Markets in Financial Instruments Directive II (MiFID II) Directive 2014/65/EU- Secondary Markets

Level 2 Regulation: Regulation 2017/565 - MiFID II Delegated Regulation

Level 3 Regulation: ESMA70-872942901-38 - Q&A on MiFID II and MiFIR market structures topics

Topic: Direct Electronic Access and algorithmic trading

Subject Matter: Algorithmic trading

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Question

Submission Date: 03 April 2017

When would an investment firm using only algorithms which draw human traders’ attention to trading opportunities qualify as engaged in algorithmic trading?

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ESMA Answer

Answer Date: 03-04-2017

[ESMA 70-872942901-38 MiFID II MiFIR market structures Q&A, Q&A 3.7] The use of algorithms which only serve to inform a trader of a particular investment opportunity is not considered as algorithmic trading, provided that the execution is not algorithmic.

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This document was automatically extracted from the ESMA EMIR Q&A database.