Trading Venues may list multiple gateway-to-gateway latency times for different percentiles. For the purposes of clock synchronisation, ESMA considers that Trading Venues should use the gateway-to-gateway latency time at the 99th percentile.
Trading Venues have obligations to monitor in real-time the gateway to gateway latency under Article 13(c) (ESMA/2015/1464) [COMMISSION DELEGATED REGULATION (EU) 2017/584 of 14.7.2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council with regard to regulatory technical standards specifying organisational requirements of Trading Venues.]. If the gateway-to-gateway latency improves from greater than 1 millisecond to less than or equal to one millisecond then their requirments under Article 50 for the granularity and maximum divergence change. This type of scenario is most likely to occur following a change to a new matching engine or technology enhancements to a venue’s existing infrastructure and therefore the ti
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