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