Q&A · ESMA

High-Frequency Trading (HFT) technique - Identification and authorisation

Answered

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

AI-generated Summary

Firms must check at least monthly whether they meet the HFT criteria in Article 19 of Delegated Regulation 2017/565, using message-rate estimates venues must provide on request; an unauthorised firm using HFT must seek authorisation immediately, and any algorithmic trader must notify its home authority and those of the venues it trades on.

Details

Reference	ESMA_QA_1601
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 3.5

Provisions it relates to

Article 2 MiFID II · Exemptions
MiFID II
Inferred · 75%
Article 17 MiFID II · Algorithmic trading
MiFID II
Inferred · 75%
MiFID II (whole act)
Explicit reference

Documents it refers to

Delegated actIn forceExplicit reference
Commission Delegated Regulation (EU) 2017/565 of 25 April 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council as regards organisational requirements and operating conditions for investment firms and defined terms for the purposes of that Directive
European Commission · 31 Mar 2017 · EUR-Lex
AI summaryThe main MiFID II Delegated Regulation: defines key terms (such as investment advice, systematic internaliser, algorithmic and high-frequency trading, and direct electronic access) and sets detailed organisational requirements and operating conditions for investment firms, including compliance, conflicts of interest, remuneration, client information, suitability and appropriateness, best execution, client order handling, reporting to clients, record keeping and transaction-level obligations.