ACER has issued an open letter attached on aspects of the new rules on REMIT II (see here) relating to algorithmic(“algo”) trading and Direct Electronic Access (DEA). Another letter is promised in the future relating to the requirement for non-EU Market Participants to have an EU representative and also Article 15 (monitoring and reporting of suspicious transactions).

The focus of the letter is the scope of the new rules, ie : what is an algo and what is DEA? This is so that Market Participants can notify NRAs of the use of algos and/or DEA. The annex gives examples of what is and isn’t an algo and also what is considered DEA.

The letter can be found here.