Q&A · ESMA

Under which circumstances a trading venue may cancel, vary or correct a transaction?

Answered

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

AI-generated Summary

Trading venues allowing algorithmic trading must be able to cancel or revoke transactions when volatility mechanisms or trading systems malfunction (Article 18 RTS 7), and their rulebooks may set out other exceptional cases for cancellation, provided these are transparent and non-discriminatory.

Details

Reference	ESMA_QA_1617
Issuer	ESMA
Published	7 Jul 2017
Answered	7 Jul 2017
Submitted	7 Jul 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 3.21

Provisions it relates to

Article 47 MiFID II · Organisational requirements
MiFID II
Inferred · 85%
Article 48 MiFID II · Systems resilience, circuit breakers and electronic trading
MiFID II
Inferred · 70%
MiFID II (whole act)
Explicit reference

Documents it refers to

RTSIn forceExplicit reference
Commission Delegated Regulation (EU) 2017/578 of 13 June 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council on markets in financial instruments with regard to regulatory technical standards specifying the requirements on market making agreements and schemes
European Commission · 31 Mar 2017 · EUR-Lex
AI summaryRTS 8 on market making: specifies when algorithmic traders pursuing a market making strategy must sign a market making agreement with a trading venue, the agreement's minimum content and the exceptional circumstances that suspend obligations, and requires venues to run fair and non-discriminatory market making schemes for specified liquid instruments.