Algorithmic trading Sample Clauses
The 'Algorithmic trading' clause defines the rules and parameters governing the use of automated computer programs to execute trades on behalf of a party. It typically outlines requirements for pre-approval of trading algorithms, compliance with applicable laws and regulations, and the obligation to monitor and control algorithmic activity to prevent market abuse or errors. By establishing clear guidelines for the deployment and oversight of algorithmic trading systems, this clause helps mitigate operational and regulatory risks associated with automated trading, ensuring responsible and compliant use of such technology.
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Algorithmic trading. Client is not allowed to use the services of DEGIRO for algorithmic trading. Algorithmic trading is any kind of trading in financial instruments where a computer algorithm automatically determines individual parameters of orders such as whether to initiate the order, the timing, price or quantity of the order or how to manage the order after its submission, with limited or no human intervention.
Algorithmic trading. 2.8.1 A Participant engaging in Algorithmic Trading may not engage in Algorithmic Trading on the GFO-X Market without GFO-X’s prior written consent.
2.8.2 Each Participant that is itself engaging in Algorithmic Trading shall, in compliance with the FCA Rules:
(a) maintain a formalised governance to ensure the monitoring of its trading systems and trading algorithms, having specific regard to the nature, scale and complexity of its business;
(b) have in place effective systems and risk controls suitable to the business it operates to ensure that its trading systems and/or those of any Relevant Persons:
(i) are resilient and have sufficient capacity;
(ii) are subject to appropriate trading thresholds and limits;
(iii) prevent the transmission of erroneous Orders or the systems otherwise functioning in a way that may create or contribute to a disorderly market;
(iv) cannot be used for any purpose that is contrary to Applicable Laws, including but not limited to Market Abuse regulations, these Rules and the good standing of the Market,
(c) have sufficient knowledge and the necessary documentation to ensure compliance with these Rules in relation to any procured or outsourced hardware or software used in Algorithmic Trading;
(d) in relation to an Algorithmic Trading system, trading algorithm or Algorithmic Trading strategy:
(i) establish clearly delineated methodologies to develop and test such systems, algorithms or strategies prior to their deployment or substantial update;
(ii) with regards to trading algorithms leading to Order execution, adapt its testing methodologies appropriately for usage on the GFO-X Market and undertake further testing if there are substantial changes to the Algorithmic Trading system or to the access to the platform in which such systems, algorithms or strategies are to be used;
(iii) carry out appropriate testing and provide environments to facilitate such testing to ensure that Algorithmic Trading systems cannot create or contribute to disorderly trading conditions on the GFO-X Market and to manage any disorderly trading conditions which do arise from such Algorithmic Trading systems, including systems to limit the ratio of unexecuted Orders to Trades that may be entered into the system by a Participant or Relevant Person, to be able to slow down the flow of Orders if there is a risk of its system capacity being reached and to limit and enforce the minimum tick size that may be executed on the GFO-X Market,
(e) before deployment o...
Algorithmic trading. The Client is not allowed to use the services of DEGIRO for algorithmic trading.