ESMA_QA_1603
03/04/2017
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Subject Matter
Algorithmic trading
When would an investment firm using only algorithms which draw human traders’ attention to trading opportunities qualify as engaged in algorithmic trading?
ESMA Answer
03-04-2017

[ESMA 70-872942901-38 MiFID II MiFIR market structures Q&A, Q&A 3.7]

The use of algorithms which only serve to inform a trader of a particular investment opportunity is not considered as algorithmic trading, provided that the execution is not algorithmic.

Status: Answer Published

Additional Information

Level 1 Regulation
Markets in Financial Instruments Directive II (MiFID II) Directive 2014/65/EU- Secondary Markets
Level 2 Regulation
Regulation 2017/565 - MiFID II Delegated Regulation
Level 3 Regulation
ESMA70-872942901-38 - Q&A on MiFID II and MiFIR market structures topics
Topic
Direct Electronic Access and algorithmic trading