In-depth Markets: Market functioning

The AMF clarifies the provisions on order automated processing facilities which will be applicable as from 1 January 2015.

Published on November 19, 2014

The AMF publishes an English version of Article 315-67 of its general regulation to enable non-resident persons using an automated processing of orders facility taking the necessary steps to comply with this new article made under the Law of 26 July 2013 on the Separation and Regulation of Banking Activities, which will be applicable as from 1 January 2015. This translation is for information purposes only.

A document outlining some practical arrangements related to the implementation of this new article and a notifying template will soon be posted on the website of the AMF.




Section 9 – Supervision of automated and high-frequency trading
Article 315-67
I. - An automated processing facility, as defined in Article L. 451-4 of the Monetary and Financial Code, means any computer algorithm that is used to trade financial instruments on a regulated market or multilateral trading facility and that automatically determines order parameters, such as opportunity and time of issue, price and quantity, and the way in which orders shall be managed, with no or limited human intervention, once issued. Such facilities do not include systems used to comply with Article L. 533-18 of the Monetary and Financial Code.
II. – Investment services providers using one or more automated processing facilities and issuing orders for the securities of companies having their registered office in France shall notify the AMF thereof no later than one month after the facilities have been brought into operation. Such notification shall specify the regulated market or multilateral trading facility to which orders are sent.
Investment services providers shall adopt procedures and internal arrangements allowing them to retain, for a period of five years, the trading algorithm as well as traceable records of each transaction and of each order issued by such algorithm, including its details, modifications and cancellations, where such is the case. This information shall be made available to the AMF.
Where an investment services provider supplies clients with an internet-based order reception and transmission service or an order execution service by means of a tool with a functionality mentioned in the first paragraph of II, it shall make the notification in lieu of its clients and shall adopt procedures and arrangements meeting the requirements set forth in the paragraph above.

III. – The provisions of this article shall apply to any person using one or more automated processing facilities. For non-resident persons, these provisions shall apply only if the orders are sent to a regulated market or multilateral trading facility in France.


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Legal information
Head of publications: The Executive Director of AMF Communication Directorate.
Contact: Communication Directorate – Autorité des marches financiers 17 place de la Bourse – 75082 Paris cedex 02