What is a requirement for trading venues under MiFID concerning limit orders?

In the context of MiFID (Markets in Financial Instruments Directive), trading venues must ensure that limit orders are validated against defined price corridors. This requirement is in place to enhance market integrity and protect against market manipulation. By validating limit orders, trading venues can prevent orders that are outside of acceptable price ranges from being placed, thereby ensuring that the orders reflect realistic market conditions.

The validation process helps maintain a fair and orderly market, as it prevents extreme price fluctuations that could result from erroneous or manipulative limit orders. This requirement aligns with MiFID's broader goals of transparency, fairness, and investor protection in the trading environment. Thus, the ability to validate limit orders against price corridors is a fundamental aspect of maintaining the integrity and stability of trading venues under MiFID regulations.