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28-12-2017 - Information by BSE-Sofia (Information by BSE-Sofia)

Setting up maximum values of the ratio of unexecuted orders to transactions (order-to-trade ratio or OTR)

With reference to the new regulatory framework of MiFID II and MiFIR and in connection with the requirements of Delegated Regulation (EU) 2017/566 of the Commission dated 18 May 2016, by virtue of a resolution of the Board of Directors of BSE-Sofia taken under Record of Proceedings No. 66 of 22 December 2017, maximum values of the order-to-trade ratio (OTR) have been set up. OTR defines the ratio between the submitted, modified or cancelled orders (unexecuted orders) and transactions in order to prevent disorderly trading conditions on the regulated markets.
BSE-Sofia shall calculate the ratio of the unexecuted orders to transactions for every Exchange member after the end of each trading session in volume terms and in number terms in accordance with the methodology and formulas provided for by Delegated Regulation (EU) 2017/566.

Maximum ratios of unexecuted orders to transactions:

Maximum OTR in volume terms:
1. Maximum OTR for the BSE Main Market - 5,000,000
2. Maximum OTR for the BaSE Alternative Market - 10,000,000

Maximum OTR in number terms:
1. Maximum OTR for the BSE Main Market - 1,000
2. Maximum OTR for the BSE Main Market for Exchange members acting as market-makers - 5,000
3. Maximum OTR for the BaSE Alternative Market - 1,000

The resolution is to become effective as from 03 January 2018 but could be amended if needed.
As from the same date Exchange members shall start receiving their individual daily reports on the OTR values calculated in both volume and number terms for each issue of financial instruments for the respective Exchange member. The report shall be accessible via the web-site of the Exchange on the day following the day as at which the ratios have been calculated.