FIA’s European E-Trading Committee - in cooperation with the Managed Funds Association - have produced a template of questions for use by exchange members facilitating algorithmic trading by their clients.
The purpose behind the Algorithmic Due Diligence Guide is to assist firms in their determination in whether they need additional information from their existing or prospective Clients engaged in algorithmic or automated trading through the firms’ exchange membership. The Algorithmic Due Diligence Guide consists of 8 sections (general organisational requirements, compliance, staffing, testing, deployment, control, surveillance and monitoring) and provides a list of standardised questions and language which firms, within any jurisdiction, can incorporate into their own due diligence discussions with Clients.
DEA Providers under MiFID have the option of using the Algorithmic Due Diligence Guide alongside the FIA Due Diligence Assessment of Prospective DEA Clients.
For further information please contact Tessa Jones or Greg Wood.
