{"release":{"id":"a4f2a0495fe55b47323883f82977a9b34ab66171ec9623e39925d3a7045b6c81","published":"2026-11-01T16:41:30Z","pinned":false},"limits":{"coverage":{"history":"current_only","held_since":"2026-10-26","gaps":[],"covered":["2017/589 — RTS — Investment firms engaged in algorithmic trading [in force] L2"],"not_covered":["national guidance","court decisions"]},"freshness":{"release_id":"a4f2a0495fe55b47323883f82977a9b34ab66171ec9623e39925d3a7045b6c81","release_published":"2026-11-01T16:41:30Z","checked_at":"2026-10-26","checked_against":"EUR-Lex"},"truncation":null,"failures":[],"incomplete":[]},"page":{"path":"/mifid-ii/level-2/rts/2017-589-the-organisational-requirements-of-investment-firms-engaged/articles/22","url":"https://www.headlesslaw.com/mifid-ii/level-2/rts/2017-589-the-organisational-requirements-of-investment-firms-engaged/articles/22","title":"Article 22 — Due diligence assessment of prospective DEA clients (Article 17(5) of Directive 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Delegated Regulation (EU) 2017/589 · binding · OJ L 87, 31.3.2017 · dated 19 Jul 2016 [in force]","attribution":{"prepared_by":"European Commission","published_by":"Publications Office of the EU","published_in":"Official Journal of the European Union","document_type":"delegated_regulation","legal_nature":"binding_adopted","addressees":"not stated in the document","dates":{"document_date":"2016-07-19","entry_into_force":"2017-04-20","locators":{"document_date":"CELLAR 32017R0589 work_date_document","entry_into_force":"CELLAR 32017R0589 resource_legal_date_entry-into-force (earliest)"}},"adoption":null},"context":{"act":{"work_id":"spaces/mifid-ii/level-2/rts/2017-589-the-organisational-requirements-of-investment-firms-engaged","path":"/mifid-ii/level-2/rts/2017-589-the-organisational-requirements-of-investment-firms-engaged","name":"Commission Delegated Regulation (EU) 2017/589","number":"2017/589","celex":"32017R0589","title_official":"COMMISSION DELEGATED REGULATION (EU) 2017/589 of 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clients to ensure that they meet the requirements set out in this Regulation and the rules of the trading venue to which it offers access.\n1. <a id=\"art-22-p-2\"></a>The due diligence assessment referred to in paragraph 1 shall cover:\n\n    <a id=\"art-22-p-2-a\"></a>**(a)** the governance and ownership structure of the prospective DEA client;\n\n    <a id=\"art-22-p-2-b\"></a>**(b)** the types of strategies to be undertaken by the prospective DEA client;\n\n    <a id=\"art-22-p-2-c\"></a>**(c)** the operational set-up, the systems, the pre-trade and post-trade controls and the real time monitoring of the prospective DEA client. The investment firm offering DEA allowing DEA clients to use third-party trading software for accessing trading venues shall ensure that the software includes pre-trade controls that are equivalent to the pre-trade controls set out in this Regulation.\n\n    <a id=\"art-22-p-2-d\"></a>**(d)** the responsibilities within the prospective DEA client for dealing with actions and errors;\n\n    <a id=\"art-22-p-2-e\"></a>**(e)** the historical trading pattern and behaviour of the prospective DEA client;\n\n    <a id=\"art-22-p-2-f\"></a>**(f)** the level of expected trading and order volume of the prospective DEA client;\n\n    <a id=\"art-22-p-2-g\"></a>**(g)** the ability of the prospective DEA client to meet its financial obligations to the DEA provider;\n\n    <a id=\"art-22-p-2-h\"></a>**(h)** the disciplinary history of the prospective DEA client, where available.\n\n1. <a id=\"art-22-p-3\"></a>A DEA provider allowing sub-delegation shall ensure that a prospective DEA client, before granting that client access, has a due diligence framework in place that is at least equivalent to the one described in paragraphs 1 and 2.\n\n","marks":[],"text_hash":"0c9d8d1eca2737d18e269a28e245a56b27d05e51fe8828708d61725a1fa92c79","revision":1}}