UBS MTF would like to provide further details on its upcoming implementation of well-formed market checks, announced previously in its notice N11 of 8 September 2015. These will be effective from Tuesday 24 November 2015.
This new and enhanced functionality is designed to ensure that the executed price from the most relevant market for that instrument is the best price at the time of the trade. UBS MTF will construct a European Best Bid and Offer (EBBO) price using market data sourced from the following trading venues: BATS Europe (lit CHIX and BATE segments), and Turquoise, in addition to the primary market, for each instrument available on UBS MTF. Matching orders will only execute at the prevailing market price if that price is as good as or better than the UBS MTF EBBO.
No action is required from members.
A paper detailing these checks in further detail is now available on the UBS MTF website at https://www.ubs.com/microsites/multilateral-trading-facility/en/member-information.html and attached to this notice.
This enhanced functionality will also be reflected in a modification to the UBS MTF Rulebook which will take effect from the same date. A mark-up of the Rulebook highlighting the reference to the new Well-formed Market Checks in section 6.5 is attached to this notice.
If you have any queries regarding this notice please contact the UBS MTF Supervisors at +44 20 7568 2052 or ubs_mtf@ubs.com.