Q&A · ESMA

Direct Electronic Access (DEA) and algorithmic trading - Trading systems - RTS 7

Answered

Read the official text on the ESMA website(opens in a new tab)

AI-generated Summary

RTS 7 applies to any trading venue where order submission and matching are facilitated electronically, including RFQ systems without auto-matching and venues that prohibit algorithmic trading, though some organisational requirements may be applied proportionately to such trading models.

Details

Reference	ESMA_QA_1488
Issuer	ESMA
Published	5 Dec 2019
Answered	5 Dec 2019
Submitted	5 Dec 2019
ESMA topics	Direct Electronic Access and algorithmic trading
Earlier Q&A document	ESMA 70-872942901-38 MiFID II MiFIR market structures Q&A, Q&A 3.31

Provisions it relates to

Article 48 MiFID II · Systems resilience, circuit breakers and electronic trading
MiFID II
Inferred · 90%
MiFIR (whole act)
Explicit reference

Documents it refers to

RTSIn forceExplicit reference · 90%
Commission Delegated Regulation (EU) 2017/584 of 14 July 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council with regard to regulatory technical standards specifying organisational requirements of trading venues
European Commission · 31 Mar 2017 · EUR-Lex
AI summaryRTS 7 on organisational requirements of trading venues that permit or enable algorithmic trading: covers governance, compliance, staffing and outsourcing, member due diligence, conformance and algorithm testing, capacity, monitoring, business continuity, volatility mechanisms, pre- and post-trade controls, and conditions for direct electronic and sponsored access.