Response to ESMA on Guidelines on the calibration, publication and reporting of trading halts

FESE believes that safeguard mechanisms are fundamental in preventing or limiting the occurrence of extraordinary volatility events or the so-called “flash crashes” in equity markets. Over the past years, and in many cases prior to MiFID I implementation, many European trading venues have successfully implemented safeguard mechanisms.

Thanks to these measures, today venues contribute more effectively to ensuring financial stability and the protection of European investors.Regarding the proposed guidelines, FESE agrees with ESMA that a one-size-fits-all model for all trading halts would not be suitable. We share the approach that the proposed guidelines should be sufficiently broad to encompass all types of trading halts and avoid recommending specific and quantitative parameters.