Operation of a multilateral trading facility or an organised trading facility

(1) The operator of a multilateral or organised trading facility is obliged to
1. establish non-discriminatory rules for access to the multilateral or organised trading facility that leave no discretion to the operator;
2. establish rules for the admission of financial instruments to trading, for the proper conduct of trading and price formation, for the use of reference prices used, and for the contractual settlement of concluded transactions;
3. have appropriate procedures for monitoring compliance with the rules under number 2 and with Regulation (EU) No 596/2014;
4. publish all information that, having regard to the type of users and the financial instruments traded, is necessary and appropriate for the use of the multilateral or organised trading facility;
5. charge separate fees for excessive use of the multilateral or organised trading facility, in particular through disproportionately numerous order entries, modifications and cancellations; the amount of such fees must be set so as effectively to counter excessive use and the associated negative effects on system stability or market integrity;
6. take appropriate arrangements to ensure orderly price formation even in the event of significant price fluctuations; appropriate arrangements include in particular short-term changes to the market model, short-term volatility interruptions having regard to static or dynamic price corridors and limit systems of the trading participants entrusted with price formation, whereby the operator must, in exceptional cases, be able to cancel, amend or correct any transaction; the parameters for such volatility interruptions must have regard to the liquidity of the individual categories and sub-categories of the financial instruments concerned, the type of market model and the type of users, and must make it possible to prevent significant disruptions to orderly trading; the operator must notify these parameters to the Bundesanstalt;
7. ensure that there is an appropriate ratio between order entries, modifications and cancellations and the transactions actually executed (order-to-transaction ratio), in order to avoid risks to orderly trading in the multilateral or organised trading facility; the order-to-transaction ratio is to be determined for each financial instrument, by reference to the numerical volume of orders and transactions within a day; an order-to-transaction ratio is in particular appropriate where it is economically justifiable on account of the liquidity of the financial instrument concerned, the specific market situation, or the function of the trading participant;
8. set an appropriate minimum size of price movement (tick size) for the shares, share certificates, exchange-traded funds, certificates and other comparable financial instruments traded, as well as all other financial instruments covered by the delegated act of the European Commission adopted on the basis of Article 49(4) of Directive 2014/65/EU, in order to reduce negative effects on market integrity and liquidity; in doing so it must in particular be taken into account that this does not impair the price-discovery mechanism and the objective of an appropriate order-to-transaction ratio; as regards the individual requirements for setting the minimum tick size, reference is made to Commission Delegated Regulation (EU) 2017/588 of 14 July 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council with regard to regulatory technical standards on the tick size regime for shares, depositary receipts and exchange-traded funds (OJ L 87, 31.3.2017, p. 411), as amended;
9. establish appropriate risk controls and thresholds for trading via direct electronic access, in particular establish rules concerning
a) the labelling of orders submitted via direct electronic access, and
b) the possibility of blocking or terminating, at any time, a direct electronic access in the event of breaches by the holder of direct access of applicable legal provisions;
10. establish rules for the labelling by trading participants of all orders generated by algorithmic trading within the meaning of section 80(2), first sentence, and for the disclosure of the trading algorithms used for that purpose and of the persons who initiated those orders;
11. ensure reliable management of the technical operations of the trading system, in particular by
a) providing effective contingency arrangements in the event of a system failure or disruptions to its trading systems, so as to be able to ensure continuity of business operations,
b) ensuring that the trading systems are resilient and have sufficient capacity for peak order and message volumes, and
c) ensuring that the systems are capable of ensuring orderly trading even under extreme market stress conditions, and that they are fully tested for these purposes;
12. take arrangements by which possible adverse effects of conflicts of interest between the multilateral or organised trading facility and its owner or operator, on the one hand, and the proper functioning of the multilateral or organised trading facility, on the other, on its operation or on its trading participants, can be clearly identified and managed;
13. ensure that the multilateral or organised trading facility has at least three active members or users, each of whom is able to interact with all other members and users for the purposes of price formation;
14. ensure that the data-quality standards laid down in Article 22b of Regulation (EU) No 600/2014, including in the regulatory technical standards adopted under Article 22b(3) of Regulation (EU) No 600/2014, are satisfied. Section 5(4a) and sections 26c and 26d of the Stock Exchange Act apply correspondingly.
(2) Fee structures, including execution fees, ancillary fees and any rebates, must be transparent and non-discriminatory. Fees must not create incentives to place, amend or cancel orders, or to carry out transactions, in a manner that contributes to disorderly trading conditions or market abuse. In particular, rebates in relation to individual shares or share portfolios may be granted only in return for the assumption of market-making obligations.
(3) The operator of a multilateral or organised trading facility must provide the Bundesanstalt with a detailed description of how the trading system functions. This must also cover any connections of the trading system to exchanges, other multilateral or organised trading facilities or systematic internalisers whose sponsor or operator is owned by the operator of the trading facility, as well as a list of the members, participants and users of the trading facility. The Bundesanstalt makes this information available at the request of the European Securities and Markets Authority. It notifies the European Securities and Markets Authority of every grant of an authorisation to operate a multilateral or organised trading facility.
(4) Issuers whose financial instruments have been admitted to trading on a multilateral or organised trading facility without their consent cannot be required to publish information relating to those financial instruments for that multilateral or organised trading facility.
(5) The operator of a multilateral or organised trading facility may require an issuer to transmit reference data relating to its financial instruments, insofar as this is necessary to satisfy the requirements of Article 4 of Regulation (EU) No 596/2014.
(6) The operator of a multilateral or organised trading facility must notify the Bundesanstalt without delay of serious breaches of its trading rules, disruptions to market integrity, and indications of a breach of the provisions of Regulation (EU) No 596/2014, and must give it full support in its investigations.
(7) In addition, the operator of a multilateral or organised trading facility must notify the Bundesanstalt without delay where a financial instrument traded on its trading facility is subject to a significant fall in price within the meaning of Article 23 of Regulation (EU) No 236/2012.
(8) The operator of a multilateral or organised trading facility must notify the Bundesanstalt in writing without delay of the receipt of applications for access under Articles 7 and 8 of Regulation (EU) No 648/2012. The Bundesanstalt may
1. under the conditions specified in Article 7(4) of Regulation (EU) No 648/2012, prohibit the operator of a multilateral or organised trading facility from accessing a central counterparty within the meaning of that Regulation, and
2. under the conditions specified in Article 8(4) of Regulation (EU) No 648/2012, prohibit the operator of a multilateral or organised trading facility from granting a central counterparty within the meaning of that Regulation access.