MiFID II and Algorithmic Trading AI: Best Execution, Kill Switches, and the Algo Register
· 4 min read
MiFID II Article 17 was written specifically for algorithmic trading. It predates large language models, but its requirements translate directly to AI trading agents: you need a kill switch, an algo register, annual conformity testing, and an audit trail that covers every order generated by the algorithm.
The FCA's equivalent rules in the UK (post-Brexit) mirror MiFID II Article 17 almost exactly. If you operate in both jurisdictions, you're dealing with two regulators but essentially the same requirements.