(Article 48(1) of Directive 2014/65/EU)

1. Trading venues shall, in the context of the self-assessment to be performed in accordance with Article 2, evaluate the performance and capacity of their algorithmic trading systems and associated processes for governance, accountability, approval and business continuity arrangements.

2. As part of the evaluation referred to in paragraph 1, trading venues shall perform stress tests where they simulate adverse scenarios to verify the performance of the hardware, software and communications and identify the scenarios under which the trading system or parts of the trading system perform their functions with systems failures, outages or errors in matching transactions.

3. Stress tests shall cover all trading phases, trading segments and types of instruments traded by the trading venue and shall simulate members' activities with the existing connectivity set-up.

4. The adverse scenarios referred to in paragraph 2 shall be based on the following:

(a) an increased number of messages received, starting at the highest number of messages managed by the trading venue's system during the previous five years;

(b) unexpected behaviour of the trading venue's operational functions;

(c) random combination of stressed and normal market conditions and unexpected behaviour of the trading venue's operational functions.