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🔗 Back to Summary. 🇫🇷 French Version: 2017R0589_FR.9. Back to Summary of LVL1. Open the PDF. Direct link to EUR-LEX.
Article 8 – Controlled deployment of algorithms ⬅️ | ➡️ Article 10 – Stress testing
Références LVL1 <=> LVL2
Level 1 reference(s): 2014L0065_EN.17 > 1
Article 9 - Annual self-assessment and validation
1.
An investment firm shall annually perform a self-assessment and validation process and on the basis of that process issue a validation report. In the course of that process the investment firm shall review, evaluate and validate the following:
(a)
its algorithmic trading systems, trading algorithms and algorithmic trading strategies;
(b)
its governance, accountability and approval framework;
(c)
its business continuity arrangement;
(d)
its overall compliance with EU, having regard to the nature, scale and complexity of its business.
The self-assessment shall also include at least an analysis of compliance with the criteria set out in Annex I to this Regulation.
2.
The risk management function of the investment firm referred to in Article 23(2) of Commission Delegated Regulation (EU) 2017/565
, shall draw up the validation report and, for that purpose, involve staff with the necessary technical knowledge. The risk management function shall inform the compliance function of any deficiencies identified in the validation report.
3.
The validation report shall be audited by the firm’s internal audit function, where such function exists, and be subject to approval by the investment firm’s senior management.
4.
An investment firm shall remedy any deficiencies identified in the validation report.
5.
Where an investment firm has not established a risk management function referred to in Article 23(2) of Delegated Regulation (EU) 2017/565, the requirements set out in relation to the risk management function in this Regulation shall apply to any other function established by the investment firm in accordance with Article 23(2) of Delegated Regulation (EU) 2017/565.