Q&A · ESMA

Provisions of Article 17(6) of MiFID II and of Chapter IV of RTS 6

Answered

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AI-generated Summary

Article 17(6) MiFID II and Chapter IV of RTS 6 apply to every firm acting as a general clearing member, not only those with algorithmic trading clients.

Details

Reference	ESMA_QA_1623
Issuer	ESMA
Published	4 Oct 2018
Answered	4 Oct 2018
Submitted	4 Oct 2018
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 3.28

Provisions it relates to

Article 17 MiFID II · Algorithmic trading
MiFID II
Explicit reference · 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.