Chapter III: Obligations of investment services providers

In this sub-section and for the purposes of the provisions relating to algorithmic trading : 1° “algorithmic trading” means trading in financial instruments in which a computer algorithm automatically determines the parameters of orders, such as whether or when they should be issued, the price or quantity terms, or how they will be managed after they have been issued, without human intervention or with limited human intervention. Algorithmic trading does…

Investment services providers other than portfolio management companies that use algorithmic trading : 1° Have effective systems and risk controls appropriate to their business to ensure that their trading systems: a) Are resilient and have sufficient capacity ; b) Are subject to appropriate trading thresholds and limits; c) prevent the sending of erroneous orders or any other operation of the systems likely to give rise to or contribute to market…

Investment services providers other than portfolio management companies that use algorithmic trading in a Member State of the European Union or party to the Agreement on the European Economic Area shall: 1° Notify the Autorité des marchés financiers as well as the competent authority designated as the contact point, within the meaning of Article 79(1) of Directive 2014/65/EU of the European Parliament and of the Council of 15 May 2014…

Investment services providers other than portfolio management companies that use algorithmic trading to implement a market-making strategy must comply with the following conditions, taking into account the liquidity, size and nature of the market and the characteristics of the financial instrument concerned: 1° They carry out this market making continuously during a specified proportion of the trading hours of the trading platform, save in exceptional circumstances, with the result of…

Investment services providers other than portfolio management companies which use a high-frequency algorithmic trading technique shall keep an accurate and chronological record of all orders placed, including order cancellations, orders executed and quotes on trading venues.