Pre-trade Controls

Under Swiss law pre-trade controls refer to the trading venue's obligation to have controls in place to reject orders that exceed pre-determined volume and price thresholds or are clearly erroneous.

MiFID II requires a minimum of pre-trade controls for each traded instrument which are price collars, maximum order value and maximum order volume. 

Our approach

In order to be compliant with the Swiss and European Regulation, in addition to the existing circuit breakers, SIX Swiss Exchange as well as SIX Corporate Bonds will implement the following controls: price collars, maximum order value and maximum order volume by instrument.

What How
Price collars The system should automatically block or cancel orders that do not meet certain parameters
Maximum order value The system should automatically block or cancel orders if the value exceeds a certain limit
Maximum order volume The system should automatically block or cancel orders if the order size exceeds a certain limit

Details of limits and implementation is scheduled for 2017.

Swiss Regulation

European Regulation

Q&A