Test algos or go to jail

Under Mifid II, participants need to certify their algorithms will not cause market disorder or face the consequences

Firms will be required to test algos in a realistic, non-live environment under stressed market conditions

Software vendor SQS, in partnership with financial services specialist TraderServe, is launching a real-world testing service to help trading venues and investment firms ensure their algorithms are robust and unlikely to cause market disorder, failing which they will be liable for fines or even criminal sanctions under EU rules.

Under Mifid II, trading firms are required to certify and provide evidence that their algorithms have been properly tested, and are unlikely to cause disorder or flash

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