FCA MAR 5A.5

Requirements:

• The firm must maintain effective systems, controls, policies, and procedures for algorithmic trading that are appropriate for the size and nature of its business.
• The firm’s trading systems must be resilient, capable of handling high trading volumes, and able to support orderly trading, including during periods of market stress. The firm must maintain and test business continuity arrangements to ensure services can continue if systems fail.
• The firm must have controls to prevent and reject erroneous orders, manage system capacity, and prevent algorithmic trading from causing disorderly market conditions. It must also be able to identify and manage any disorderly trading that does occur.
• Trading algorithms must be appropriately tested before use, and the firm must provide suitable testing environments and controls to support that testing.