The Association for Financial Markets in Europe (AFME) has published a new due diligence questionnaire with a view to standardising and simplifying the process of completing such questionnaires for sub-custodians.

The due diligence questionnaire has been created through a collaboration between the AFME and major European equities exchanges. The questionnaire is to be sent bilaterally from investment firms to their exchange counterparts. The questionnaire includes questions related to:

  • communication and collaboration;
  • treatment of confidential information;
  • due diligence;
  • regulatory data and data management;
  • algorithms and algorithmic testing;
  • direct electronic access impacts;
  • order to trade ratio / market making; and
  • high frequency trading.

The AFME will review the due diligence questionnaire in Q3 2017 to reflect any regulatory changes or major themes which develop over the coming year.

View AFME seeks to harmonise post trade network selection process with new standardised due diligence questionnaire, 20 January 2017