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Commission Delegated Regulation (EU) 2017/589 of 19 July 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council with regard to regulatory technical standards specifying the organisational requirements of investment firms engaged in algorithmic trading (Text with EEA relevance) (RTS 6)RecitalsChapter I General organisational requirements (arts. 1-4)Article 1 General organisational requirementsArticle 2 Role of the compliance functionArticle 3 StaffingArticle 4 IT outsourcing and procurementChapter II Resilience of trading systems (arts. 5-18)Section I Testing and deployment of trading algorithms systems and strategies (arts. 5-8)Article 5 General methodologyArticle 6 Conformance testingArticle 7 Testing environmentsArticle 8 Controlled deployment of algorithmsSection 2 Post-deployment management (arts. 9-11)Article 9 Annual self-assessment and validationArticle 10 Stress testingArticle 11 Management of material changesSection 3 Means to ensure resilience (arts. 12-18)Article 12 Kill functionalityArticle 13 Automated surveillance system to detect market manipulationArticle 14 Business continuity arrangementsArticle 15 Pre-trade controls on order entryArticle 16 Real-time monitoringArticle 17 Post-trade controlsArticle 18 Security and limits to accessChapter III Direct electronic access (arts. 19-23)Article 19 General provisions for DEAArticle 20 Controls of DEA providersArticle 21 Specifications for the systems of DEA providersArticle 22 Due diligence assessment of prospective DEA clientsArticle 23 Periodic review of DEA clientsChapter IV Investment firms acting as general clearing members (arts. 24-27)Article 24 Systems and controls of investment firms acting as general clearing membersArticle 25 Due diligence assessments of prospective clearing clientsArticle 26 Position limitsArticle 27 Disclosure of information about the services providedChapter V High-frequency algorithmic trading technique and final provisions (arts. 28-29)Article 28 Content and format of order recordsArticle 29 Entry into force and applicationAnnex I Criteria to be considered in the investment firm's self-assessment as referred to in Article 9(1)Annex II Content and format of order records as referred to in Article 28Done at
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Version status: Applicable | Document consolidation status: No known changes
Version date: 3 January 2018 - onwards
Version 3 of 3

Article 23 Periodic review of DEA clients

(Article 17(5) of Directive 2014/65/EU)

1. A DEA provider shall review its due diligence assessment processes annually.

2. A DEA provider shall carry out an annual risk-based reassessment of the adequacy of its clients' systems and controls, in particular taking into account changes to the scale, nature or complexity of their trading activities or strategies, changes to their staffing, ownership structure, trading or bank account, regulatory status, financial position and whether a DEA client has expressed an intention to sub-delegate the access it receives from the DEA provider.

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