Rules and Policies

Harmonised Rulebook and Organisation of Trading

All Euronext Trading Members are required to comply with the Harmonised Rules, Trading Manual and Trading Procedures. The relevant documentation has been updated to conform with MiFID II requirements and are available on the Euronext website with track changes for Member review.

Third country access

The term ‘third country’ refers to jurisdictions outside the EU and ‘third country firms’ refers to entities incorporated outside the EU, whether they do, or seek to do, business by way of a branch established in the EU, or on a cross-border basis, i.e. providing services to persons in one jurisdiction from a place of business in another jurisdiction without any establishment in the client's jurisdiction.

Prior to the implementation of MiFID II, access by third-country firms to European regulated markets has been governed by the relevant national regimes rather than by European legislation.  The situation changes from January 2018:

  • MiFIR creates a new regime for firms coming from jurisdictions deemed by the European Commission to have equivalent regulatory standards who provide investment services/activities only in respect of eligible counterparties or professional clients;
  • Where an equivalence decision has been made, firms subject to authorisation and ongoing supervision in their home country may operate in the EU without the need to seek authorisation from a European regulator once they have been included in the register of third-country firms maintained by ESMA;
  • National regimes may continue except in the case of firms from a jurisdiction which is the subject of an equivalence decision by the European Commission.

Based on current National arrangements, third-country firms will be able to access Euronext markets via direct memberships of the local markets or as clients of MiFID II regulated DEA providers. Euronext is currently discussing the application of the ESMA Q&A on DEA providers from third countries with its regulators and providing relevant support to impacted firms.

Non-MiFID investment firms pass their obligation to report transactions to the venue of execution. Euronext will provide a mandatory transaction reporting services on behalf of non-MiFID trading members via Euronext's Approved Reporting Mechanism (ARM). 

Conformance and Algo declaration policy

To ensure the integrity of the market, Clients are required to conform  applications that interface with Euronext in order to (i) interact with Euronext’s matching logic and (ii) process the data flows coming to and from Euronext, as described by the external specifications relevant to each of Euronext’s applications.

To avoid disorderly trading conditions, Euronext furthermore requires Euronext requires Members to have undertaken algorithm (“algo”) testing for each of their trading algorithms prior to the deployment of:

  • a new trading algorithm; or
  • a material change made to an existing trading algorithm.

The policies and procedures for such testing are established in the Conformance Test and Algo Declaration Policy. Market Structure and Transparency