According to RTS 7, Article 9, Trading venues shall require their members to undertake conformance testing prior to the deployment or a substantial update of:
- the access to the trading venue's system
- the member's trading system, trading algorithm or trading strategy
Furthermore, trading venues shall deliver a report of the results of the conformance testing to the actual or prospective Member only.
Wiener Börse AG has already established an initial process with regard to MiFID II compliance for Xetra® T7 simulation. Furthermore, Wiener Bärse AG will also follow this procedure for Xetra® Classic Release 17.0.
The procedure was introduced to members in our Xetra® circulars 14/2017 and 21/2017 and is setup as follows:
- Members have to perform mandatory tests during releases. Tests have to be performed in the normal simulation environment only.
- Wiener Börse AG records simulation activities of all members and sees clear argumentation of compatibility of Member trading systems as given, if
a. basic order-management functions (order entry, order change, order delete) have been successfully performed in the simulation system
b. by market makers intending to use the quote functionality, basic quote functions (quote entry, quote deletion) have been successfully performed in the simulation system
c. trades, triggered by own orders, and – for market makers – also triggered via own quotes have been successfully processed.
- Assessment of successful execution of the tests will be performed by Wiener Börse AG
- Members have to provide a written confirmation regarding the orderly performance of their trading systems by means of the so called "readiness statement"
- Activation of trading access in the production environment will only be granted after successful execution of the mandatory tests and after receipt of member's "readiness statement".
Wiener Börse AG will adjust the process and the readiness statement according to the requirements in RTS 7, Article 9. The final process and readiness statement will be provided to existing members in the course of the first mandatory release in 2018.
New members have to fulfil readiness requirements including mandatory tests already during their admission process.