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FCA MAR 5.3A

A Multilateral Trading Facilities (MTF) must ensure that the systems and controls, including procedures and arrangements, used in the performance of its activities are adequate, effective and appropriate for the scale and nature of its business.

Rule Overview

Jurisdiction: United Kingdom

Regulator: FCA

Topic: Market Abuse

FCA Handbook MAR 5.3A
Overview
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Firms must ensure that their trading systems:

  • Are resilient and capable of handling peak order and message volumes.
  • Support orderly trading, including during periods of severe market stress.
  • Are supported by effective business continuity arrangements that are regularly tested.
  • Can prevent or reject erroneous orders and orders that exceed predefined price or volume limits.
  • Include controls to prevent algorithmic trading from creating or contributing to disorderly market conditions.
  • Can identify and manage any disorderly trading that does occur, including through controls on excessive unexecuted orders.
  • Can slow the flow of orders if system capacity limits are at risk.
  • Enforce applicable minimum tick-size requirements.
  • Are subject to appropriate algorithm testing before deployment, with suitable testing environments available to users.
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