Q&A · ESMA
Algorithmic trading
Answered
Read the official text on the ESMA website(opens in a new tab)AI-generated Summary
The duty in Article 17(3) of RTS 6 to reconcile electronic logs means algorithmic traders must compare their own trading records with reports from venues, brokers, DEA providers, clearing members and other external sources, to detect discrepancies early and calculate their real exposure before limits are breached.
Details
| Reference | ESMA_QA_1605 |
|---|---|
| Issuer | ESMA |
| Published | 3 Apr 2017 |
| Answered | 3 Apr 2017 |
| Submitted | 3 Apr 2017 |
| 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 3.9 |
Provisions it relates to
- Article 17 MiFID II · Algorithmic tradingInferred · 90%
- MiFID II (whole act)Explicit reference
Documents it refers to
- RTSIn forceExplicit reference
AI summaryRTS 6 on organisational requirements for investment firms engaged in algorithmic trading, providing direct electronic access or acting as general clearing members: covers governance and compliance, testing and deployment of algorithms, annual self-assessment, stress testing, kill functionality, market abuse surveillance, pre- and post-trade controls, DEA client due diligence and order record keeping.