Ordinance on Financial Market Infrastructures and Market Conduct in Securities and Derivatives Trading

(Art. 36 FMIA)

¹The mul­ti­lat­er­al trad­ing fa­cil­ity shall guar­an­tee that all se­cur­it­ies ad­mit­ted to trad­ing can be traded in a fair, ef­fi­cient and or­derly man­ner.

²In the case of de­riv­at­ives, it shall en­sure in par­tic­u­lar that the way in which de­riv­at­ives trad­ing is struc­tured fa­cil­it­ates or­derly pri­cing.

³The mul­ti­lat­er­al trad­ing fa­cil­ity shall take the ne­ces­sary meas­ures to re­view the se­cur­it­ies ad­mit­ted to trad­ing for their ful­fil­ment of the ad­mis­sion re­quire­ments.

a.

are ro­bust and equipped with suf­fi­cient ca­pa­city to deal with peak volumes of or­ders and an­nounce­ments;

b.

are sub­ject to ap­pro­pri­ate trad­ing thresholds and up­per lim­its;

c.

do not cause or con­trib­ute to any dis­rup­tions in the trad­ing ven­ue;

d.

are ef­fect­ive for pre­vent­ing vi­ol­a­tions of Art­icles 142 and 143 FMIA;

e.

are sub­ject to ap­pro­pri­ate tests of al­gorithms and con­trol mech­an­isms, in­clud­ing pre­cau­tions to:

1.

lim­it the pro­por­tion of un­ex­ecuted trad­ing or­ders re­l­at­ive to the num­ber of trans­ac­tions that can be entered in­to the sys­tem by a par­ti­cipant,

2.

slow down the flow of or­ders if there is a risk of the ca­pa­city of the sys­tem be­ing reached, and

3.

lim­it and en­force the min­im­um tick size that may be ex­ecuted on the trad­ing ven­ue.

³In or­der to take ac­count of the ad­di­tion­al bur­den on sys­tem ca­pa­city, the trad­ing ven­ue may make pro­vi­sion for high­er fees for:

a.

the place­ment of or­ders that are later can­celled;

b.

par­ti­cipants pla­cing a high pro­por­tion of can­celled or­ders;

c.

par­ti­cipants with:

1.

an in­fra­struc­ture in­ten­ded to min­im­ise delays in or­der trans­fer,

2.

a sys­tem that can de­cide on or­der ini­ti­ation, gen­er­a­tion, rout­ing or ex­e­cu­tion, and

3.

a high in­tra­day num­ber of price of­fers, or­ders or can­cel­la­tions.