Q&A · ESMA

Suitability checks and controls of DEA provider

Answered

Read the official text on the ESMA website(opens in a new tab)

AI-generated Summary

A DEA provider's checks and controls under Article 17(5) MiFID II and RTS 6 apply to all clients, whether or not authorised EU firms, and it stays responsible for sub-delegated clients; it must be able to obtain all information the venue's authority needs and must be able to suspend access.

Details

Reference	ESMA_QA_1618
Issuer	ESMA
Published	3 Oct 2017
Answered	3 Oct 2017
Submitted	3 Oct 2017
ESMA topics	Direct Electronic Access and algorithmic trading
Earlier Q&A document	ESMA 70-872942901-38 MiFID II MiFIR market structures Q&A, Q&A 3.22

Provisions it relates to

Article 17 MiFID II · Algorithmic trading
MiFID II
Inferred · 95%
MiFID II (whole act)
Explicit reference

Documents it refers to

RTSIn forceExplicit reference
Commission Delegated Regulation (EU) 2017/584 of 14 July 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
European Commission · 31 Mar 2017 · EUR-Lex
AI summaryRTS 7 on organisational requirements of trading venues that permit or enable algorithmic trading: covers governance, compliance, staffing and outsourcing, member due diligence, conformance and algorithm testing, capacity, monitoring, business continuity, volatility mechanisms, pre- and post-trade controls, and conditions for direct electronic and sponsored access.