Q&A · ESMA

Replay functionality of surveillance systems

Answered

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

AI-generated Summary

Algorithmic traders' market abuse surveillance must be able to replay trading using market data from external sources, but firms need not store that data internally as long as they can retrieve it for replay.

Details

Reference	ESMA_QA_1606
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 3.10

Provisions it relates to

Article 17 MiFID II · Algorithmic trading
MiFID II
Inferred · 90%
MiFID II (whole act)
Explicit reference

Documents it refers to

RTSIn forceExplicit reference
Commission Delegated Regulation (EU) 2017/589 of 19 July 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council with regard to regulatory technical standards specifying the organisational requirements of investment firms engaged in algorithmic trading
European Commission · 31 Mar 2017 · EUR-Lex
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.