Home / Regulatory Developments / Circular C230 (“the Circular”) dated 01.08.17 regarding ESMA Guidelines on the calibration of circuit breakers and publication of trading halts under MiFID II

Circular C230 (“the Circular”) dated 01.08.17 regarding ESMA Guidelines on the calibration of circuit breakers and publication of trading halts under MiFID II

Through the Circular, CySEC informs the Cypriot Investment Firms (“CIFs”) and the Regulated Markets – Market Operators that the European Securities and Markets Authority (“ESMA”) published on, 27.07.17, Guidelines (the “Guidelines”), with ref. no. ESMA70-872942901-63, on the calibration of circuit breakers and publication of trading halts under MiFID II – Directive 2014/65/EU (the “Directive”).

The Guidelines:

  • apply to Trading Venues (meaning a Regulated Market, an MTF or an OTF in accordance with the Directive), that allow or enable algorithmic trading on their systems and to competent authorities;
  • clarify the provisions of Article 48(5) of the Directive and are not restricted to a specific type of circuit breaker. Thus, they apply indistinctly to all mechanisms that trading venues could potentially set in place in accordance with Article 48(5) of the Directive;
  • are aimed at developing common standards to be taken into consideration by trading venues for the calibration of their circuit breakers and, more generally, to ensure consistent application of the provisions in Articles 48(5) of the Directive.

CySEC’s expects that: The financial market participants to whom these Guidelines apply, shall make every effort to comply with the Guidelines, which will apply from 03.01.18 onwards and which will be incorporated by CySEC into its supervisory practices, as appropriate including where particular, guidelines within the document that are directed primarily at the industry.

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