ESMA: Supervisory briefing on algorithmic trading in the EU

ESMA published a supervisory briefing to support consistent supervision of algorithmic trading across the EU.  This is intended to provide national competent authorities with practical tools and clarified expectations for supervising firms engaged in algorithmic trading under MiFID II.  It looks at key areas where supervisory practices have diverged, including pre-trade controls, governance arrangements, testing frameworks and outsourcing of algorithmic trading systems.  The briefing also considers the interaction between algorithmic trading and AI.