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4.3.4.4.4.5.4.6.4.7.4.8.Security of trading systems and algorithms __________________________________ 220Pre-trade controls on order entry ________________________________________ 222Record keeping and co-operation with competent authorities _____________________ 225Organisational requirements for investment firms to prevent market abuse: Monitoring,reporting and review _________________________________________________ 227Direct electronic access _______________________________________________ 229Requirements for investment firms acting as general clearing members ______________ 235Organisational requirements for trading venues (Article 48 MiFID II) ________________240Requirements for members or participants of trading venues permitting algorithmic tradingthrough their systems ________________________________________________240Trading venues’ obligation to monitor the performance and capacity of their systems _____ 242Trading venues’ capacity ______________________________________________ 245Ensuring resilience of trading systems _____________________________________ 247Testing the capacity of members or participants to access trading systems _____________ 250Testing of members’ or participants’ algorithms to avoid disorderly trading conditions ____ 251Pre-trade controls ___________________________________________________ 252Controls concerning Direct Electronic Access (DEA) ___________________________ 254Market making strategies, market making agreements and market making schemes ______ 259Preliminary point on the purpose of Article 17 and 48 of MiFID II __________________ 259Article 17 of MiFID II: Circumstances in which an investment firm would be obliged to enterinto the market making agreement _______________________________________260Articles 48 and 17 of MiFID II: Minimum market making obligations and in particular:Organisational requirements for investment firms performing a market making strategy; thecontent of market making agreements; proportion of the trading venue’s trading hours that themarket making strategy should be active ___________________________________ 264Exceptional circumstances which contradict the firm’s ability to maintain prudent riskmanagement practices ________________________________________________ 268Requirements for trading venues which have a market making scheme in place _________ 270Fair and non-discriminatory market making schemes __________________________ 270Article 48 MiFID II: Conditions under which the requirement to have in place a market makingscheme is not appropriate _____________________________________________ 271Order-to-transaction ratio (Article 48 of MiFID II) _____________________________ 274Co-location (Article 48(8) of MiFID II) _____________________________________ 279Fee structures (Article 48 (9) of MiFID II) __________________________________ 280Tick sizes (Article 48(6) and Article 49 of MiFID II) ____________________________ 289Annex 4.8.1. Technical Annex for Option 1 on Tick Sizes _________________________ 307Annex 4.8.2. Technical Annex for Option 2 on Tick Sizes ________________________ 3195.5.1.5.2.5.3.5.4.Data publication and access _______________________________________________ 326General authorisation and organisational requirements for data reporting services (Article 61(4),MiFID II) _________________________________________________________ 326Annex 5.1.1. Extract from CESR Technical Advice to the European Commission in the Context ofthe MiFID Review – Equity Markets (ref: CESR/10-802) _______________________ 328Additional requirements for particular types of Data Reporting Services Providers _______ 331Technical arrangements promoting an efficient and consistent dissemination of information –Machine readability Article 64(6), MiFID II _________________________________ 332Consolidated tape providers ____________________________________________ 3344