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    2023-04-28

Article 19 Mechanisms to manage volatility(Article 48(5) of Directive 2014/65/EU)

  1. (1)

    Trading venues shall ensure that appropriate mechanisms to automatically halt or constrain trading are operational at all times during trading hours.

  2. (2)

    Trading venues shall ensure that:

    1. (a)

      mechanisms to halt or constrain trading are tested before implementation and periodically thereafter when the capacity and performance of trading systems is reviewed;

    2. (b)

      IT and human resources are allocated to deal with the design, maintenance and monitoring of the mechanisms implemented to halt or constrain trading;

    3. (c)

      mechanisms to manage market volatility are continuously monitored.

  3. (3)

    Trading venues shall maintain records of the rules and parameters of the mechanisms to manage volatility and any changes thereof, as well as records of the operation, management and upgrading of those mechanisms.

  4. (4)

    Trading venues shall ensure that their rules of the mechanisms to manage volatility include procedures to manage situations where the parameters have to be manually overridden to ensure orderly trading.