Synchronization of Business Clocks

Synchronization of business clocks refers to the trading venue’s obligation to keep the business clocks that they use to record the date and time of any reportable event, synchronized with the Coordinated Universal Time (UTC).

 

Accordingly in MiFID II, operators of trading venues shall ensure that their business clocks adhere to the levels of accuracy outlined in the following table.

Gateway-to-gateway latency time of the trading system

UTC Accuracy
(Maximum divergence from UTC)

Granularity
(timestamp precision)

> 1 ms

1 millisecond

1 millisecond or better

≤ 1 ms

100 microseconds

1 microsecond or better

Finally, operators of trading venues shall establish a system of traceability to UTC.

Our Approach

To be compliant with EU provisions, SIX Swiss Exchange will implement the more accurate time synchronization protocol (PTP – Precision Time Protocol) with special PTP-compliant hardware on our INET infrastructure which has gateway-to-gateway latency of less than one millisecond.

PTP provides an accuracy of 1-3µs and will be compliant with RTS 25.

 

Action Plan

Order
Routing Interface

Gateway-to-gateway latency time of the trading system

UTC Accuracy

(maximum divergence from UTC)

Granularity (timestamp precision)

Action Plan

STI - Standard Trading Interface

> 1 ms

1 millisecond

1 millisecond or better

Change not required

OTI - OUCH Trading Interface

≤ 1 ms

100 microseconds

1 microsecond or better

Implement PTP

QTI - Quote Trading Interface

≤ 1 ms

100 microseconds

1 microsecond or better

Implement PTP

The outlined approach is believed to be aligned to the principles of EU law.
Implementation with SMR7 (2017).

Swiss Regulation

European Regulation

Q&A