(fra kommisjonsforordningen)

(1) Technological developments associated with electronic trading systems, and in particular the risks arising from such systems, are among the main factors determining the organisational arrangements necessary for the operation of trading venues. For that reason, Commission Delegated Regulation (EU) 2017/584 lays down specific organisational requirements for trading venues that use electronic means for the submission and matching of orders, while other trading venues are subject only to the organisational requirements laid down in Directive 2014/65/EU. Delegated Regulation (EU) 2017/584 relies on the concepts of ‘trading venues that allow or enable algorithmic trading’ and ‘algorithmic trading systems’. However, those concepts are not sufficiently clearly defined. To enhance legal certainty, it is appropriate to set out that that Regulation should apply only to trading venues in which the submission and matching of orders is facilitated by electronic means. Trading venues operating a trading system in which transactions are arranged exclusively through voice negotiation should fall outside the scope of that Regulation. 

(2) Directive (EU) 2022/2556 of the European Parliament and of the Council amended Directive 2014/65/EU to ensure alignment with the requirements on management of information and communication technology (ICT) risks set out in Regulation (EU) 2022/2554 of the European Parliament and of the Council12. In particular, Directive (EU) 2022/2556 amended the mandates conferred on ESMA to develop draft regulatory technical standards laid down in Article 48(12), points (a) and (g), of Directive (EU) 2014/65 to exclude from those mandates requirements on digital operational resilience and digital operational resilience testing. It is therefore necessary to delete those requirements from Delegated Regulation (EU) 2017/584, including requirements on business continuity arrangements, outsourcing of ICT services, the testing of trading systems, and security and limits to access. 

(3) Article 28(3) of Regulation (EU) 2022/2554 requires financial entities to inform their competent authority in a timely manner about any planned contractual arrangement on the use of ICT services supporting critical or important functions provided by ICT third-party service providers. To ensure consistency in the treatment of outsourcing of ICT services and of non-ICT services supporting critical or important functions, it is necessary to delete the authorisation requirement set out in Article 6(5), point (b), of Delegated Regulation 2017/584. To enable the competent authority to assess whether the outsourcing of critical non-ICT operational functions does or does not undermine operational resilience and business continuity and, where issues are identified, to make use of the supervisory powers set out in Article 69 of Directive 2014/65/EU, a trading venue that intends to outsource those functions should notify its competent authority thereof. 

(4) Article 48(5) of Directive 2014/65/EU requires trading venues to be able to temporarily halt or constrain trading in emergency situations or in the event of a significant price movement in a financial instrument. To ensure that short-term highvolatility episodes are adequately managed, trading venues should deploy circuit breakers. Those circuit breakers should take the form of trading halts or price collars. However, since trading halts and price collars may not be suited to trading systems other than a central limit order book or a periodic auction trading system, trading venues operating those other trading systems should be allowed to establish alternative arrangements capable of constraining trading to curb temporary increases in market volatility and prevent significant price changes during a short period, provided that those alternative arrangements are better suited to the specificities of those other trading systems. In that case, those trading venues should demonstrate to their competent authority that such alternative arrangements are better suited than trading halts or price collars. 

(5) To ensure that trading venues comply with Article 48(5) of Directive 2014/65/EU in a consistent manner, it is necessary to lay down the principles that trading venues are to consider when establishing circuit breakers and adopting a methodology for their calibration. To ensure the effective functioning of circuit breakers, that methodology should take into consideration the specific market conditions of the financial instruments to the trading of which those circuit breakers apply. To enable market participants to assess the implications of the triggering of circuit breakers for market functioning and trading activity, trading venues should publish the information on the design and functioning of those mechanisms and on the effects of their activation. However, to prevent unintended consequences for orderly trading, including the risk of artificial triggering of circuit breakers, trading venues should not be required to publish the detailed parameters underpinning the functioning of circuit breakers. To ensure effective supervision, trading venues should provide those parameters to competent authorities on a yearly basis. To ensure consistency and comparability of the information reported to competent authorities, it is necessary to provide a template that trading venues should use when reporting to their competent authority the parameters underpinning the functioning of circuit breakers. 

(6) ISO 10383 is the international standard developed by the International Organisation for Standardisation for Market Identifier Codes (‘MICs’), which provide a unique and unambiguous means of identifying trading venues. MICs are globally recognised and used for the identification of trading venues. To ensure the unambiguous identification of trading venues in their reports on circuit breakers to competent authorities, and to ensure consistency with globally agreed standards, trading venues should use the MIC assigned to them under ISO 10383 in those reports. 

(7) Delegated Regulation (EU) 2017/584 should therefore be amended accordingly. 

(8) This Regulation is based on the draft regulatory technical standards submitted to the Commission by the European Securities and Markets Authority. 

(9) The European Securities and Markets Authority has conducted open public consultations on the draft regulatory technical standards on which this Regulation is based, analysed the potential related costs and benefits and requested the advice of the Securities and Markets Stakeholder Group established in accordance with Article 37 of Regulation (EU) No 1095/2010 of the European Parliament and of the Council,