This review analysed supervisory practices across 30 NCAs, with a focus on the 12 NCAs supervising trading platforms with the most significant automated trading volumes.  According to the review, the majority of NCAs had integrated the ESMA guidelines into their supervisory approaches.  This increases the level of supervision of automated trading activity.  Despite this integration, a number of challenges associated with automated trading were identified.  These include the following:

  • IT knowledge; 
  • Testing of trading halts; and
  • Market complexity.