While trading venue outages are rare, they require an appropriate response. With the objective of a framework that builds on the broad consensus in place and supports market participants, FESE endorses the adoption of principles underpinning communication and outage procedures in exchange-traded derivatives (ETDs) markets. This initiative is designed to setting expectations for markets participants in the underlying procedures that are to be followed in the event of a market outage. As a general remark, it should be noted that derivative contracts (except for commodity markets) are in the most cases halted in the event the underlying assets are halted.
FESE Members have held extensive discussions with their market participants on the design of standard protocols in the case of outages. From these discussions and our assessment of other contributions from the industry, it is clear to FESE and its Members that there is a broad consensus on the range of aspects that should be covered by a standard protocol for outage procedures. This standard protocol in fact reflects what is already to date established practice in a wide range of exchanges.