Plato Partnership has announced new standards for managing cash equities market outages, developed by Plato member firms with discussions with major European exchanges including Deutsche Börse, Euronext, SIX Swiss Exchange, and Nasdaq OMX. While not all standards have been agreed by all exchanges, where standards have been agreed exchanges will amend their market outage policies and/or playbooks in the coming weeks.
The standards, developed by a Plato working group of buy- and sell-side market participants, aim to enhance the resilience, consistency and transparency of market operations during outages. They were developed in close collaboration with the UK Financial Conduct Authority’s (FCA) working group on market outages, which are developing standards for UK trading venues, ensuring consistency across both UK and European trading venues for market participants.
Mike Bellaro, CEO of Plato Partnership, said in a statement: “As someone who’s spent years on the buy-side, I know how disruptive outages can be for market participants. These new standards go a long way in providing the clarity and consistency we need. By working closely with Europe’s leading exchanges, we’re making a tangible step toward ensuring markets can function smoothly despite unexpected challenges. This isn’t just about improving procedures – it’s about safeguarding the trust and integrity of the entire trading ecosystem.”
Salvador Rodriguez, sell-side chair of Plato Partnership and EMEA head of Global Execution Services at Instinet Europe, said in a statement: “The clarity these standards bring is crucial for us on the sell-side, particularly during market disruptions which can be highly detrimental for our clients. These guidelines will help ensure that we can maintain operational continuity, protect our clients’ interests, and manage risks more effectively.”
Nicolas Rivard, global head of Cash Equity and Data Services at Euronext, said in a statement: “These proposed guidelines align with our ongoing efforts to enhance market stability and provide our clients with the assurance they need during volatile periods.”