On 15 July 2022, the European Securities and Markets Authority (ESMA) published updated Q&As on MIFID II and MIFIR market structures topics. The Q&As fall part of the Interactive Single Rulebook (ISRB), an online tool aimed at providing a comprehensive overview of, and easy access to, all level 2 and level 3 measures adopted in relation to a given level 1 text.

The ESMA has updated the section regarding Direct Electronic Access and algorithmic trading by adding answers to the following new questions:

  • Do orders that are executed through trading functionalities which offer automated managing of the order qualify as algorithmic trading?
  • How should firms ensure compliance with the requirements in Article 17 of MiFID II and RTS 6 when using third party systems which offer algorithmic trading functionalities?