RTS · European Commission
Commission Delegated Regulation (EU) 2017/566 of 18 May 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 for the ratio of unexecuted orders to transactions in order to prevent disorderly trading conditions
RTS 9 requiring trading venues operating electronic continuous auction order book, quote-driven or hybrid systems to calculate, at least at the end of each trading session, each member's ratio of unexecuted orders to transactions and to set maximum ratios to prevent disorderly trading conditions; voice trading systems are excluded.
Details
| Reference | Delegated Regulation (EU) 2017/566 |
|---|---|
| Issuer | European Commission |
| Published | 31 Mar 2017 |
| CELEX | 32017R0566 |
| In force / applies from | 20 Apr 2017, 3 Jan 2018 |
Provisions it relates to
- Article 48 MiFID II · Systems resilience, circuit breakers and electronic tradingLegal basis
UK version: UK Delegated Regulation (EU) 2017/566.
Documents that refer to it
- Q&AAnsweredExplicit reference
AI summaryFor the RTS 9 ratio of unexecuted orders to transactions, each quote within a bulk quote is counted individually, per financial instrument, as two orders (one buy, one sell), following the most similar order type in the RTS 9 Annex.
- Q&AAnsweredExplicit reference
AI summaryTrading venues may set different maximum order-to-trade ratios for different categories of participants, such as market makers under agreements or schemes, provided the limits serve Article 48 MiFID II and rest on statistical analysis of each category's activity and the instruments' liquidity.
- Q&AAnsweredExplicit reference
AI summaryWhere a member submits many orders without any trade, so the RTS 9 order-to-trade ratio cannot be computed, venues should treat the maximum ratio as breached once the orders exceed the number allowed per executed transaction (for example more than 10 orders with no trade where the limit is 10).
FCA Handbook
Handbook provisions whose source note cites it:
- MAR 5.3A.2R · Systems and controls
- MAR 5A.5.2R · Systems and controls
- REC 2.5.1UK · Schedule to the Recognition Requirements Regulations, paragraphs 3 – 3H
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