Trading venue outages: a framework for industry-wide standard protocols in equity markets


The reliability of trading systems in extreme market conditions is underpinned by the continuous investments of trading venues and market participants in their infrastructure. These serve to ensure orderly trading, provide investors with the best possible service and comply with the applicable regulatory requirements, notably those set out in MiFID II / MiFIR and specifically in Articles 47 and 48 in respect of trading venues.

While trading venue outages are rare, they require an appropriate response. With the objective of a more harmonised framework in Europe that builds on the broad consensus in place and to support market participants, FESE supports the adoption of an industry-wide standard protocol to harmonise communication and outage procedures. The adoption of outage standard protocols would give the entire market and its participants the confidence, awareness and transparency needed in these exceptional, yet incredibly rare, circumstances.

With the contribution of FESE members of a proposed framework for the outage standard protocols, FESE and its members look forward to an ongoing and constructive discussion with all our stakeholders, from our clients, market participants through to regulators and policymakers.