Article 20 Pre-trade and post-trade controls(Article 48(4) and (6) of Directive 2014/65/EU)

Trading venues shall carry out the following pre-trade controls adapted for each financial instruments traded on them:

1. (a)

   price collars, which automatically block orders that do not meet pre-set price parameters on an order-by-order basis;

2. (b)

   maximum order value, which automatically prevents orders with uncommonly large order values from entering the order book by reference to notional values per financial instrument;

3. (c)

   maximum order volume, which automatically prevents orders with an uncommonly large order size from entering the order book.

The pre-trade controls laid down in paragraph 1 shall be designed so as to ensure that:

1. (a)

   their automated application has the ability to readjust a limit during the trading session and in all its phases;

2. (b)

   their monitoring has a delay of no more than five seconds;

3. (c)

   an order is rejected once a limit is breached;

4. (d)

   procedures and arrangements are in place to authorise orders above the limits upon request from the member concerned. Such procedures and arrangements shall apply in relation to a specific order or set of orders on a temporary basis in exceptional circumstances.

Trading venues may establish the post-trade controls that they deem appropriate on the basis of a risk assessment of their members' activity.