S.L. 370.38 Art. 5Investment firms engaging in algorithmictrading to pursue a market making strategy.

A Maltese investment firm that engages in algorithmic trading to pursue a market making strategy shall, taking into account the liquidity, scale and nature of the specific market and the characteristics of the instrument traded: a specified proportion of the trading venue’s trading hours, except under exceptional circumstances, with the result of providing liquidity on a regular and predictable basis to the trading venue;

(b) enter into a binding written agreement with the trading venue which shall at least specify the obligations of the Maltese investment firm in accordance with paragraph (a) of this regulation; and

(c) have in place effective systems and controls to ensure that it fulfils its obligations under the written agreement referred to in paragraph (b) at all times.