Webinar: RTS 6 – meeting expectations

8 October 2020, 10:00 – 11:00

As of 2018, investment firms engaging in algorithmic trading must annually perform a self-assessment and validation process. The AFM has analyzed the results in 2019 and shared its conclusions with the market. This analysis indicated that there is room for improvement on several topics. During this webinar, we will explain how to sustainably improve and strengthen your own self-assessment and validation process. Based on practical examples and with a focus on the key areas of attention mentioned by the AFM.

During the webinar, the AFM’s three general areas of concern are discussed and concrete advice is given on how to improve.

1. Process: According to Article 9 of RTS 6, investment firms shall annually perform a self assessment and validation process and based on that, issue a validation report. We will explain to you what a practical and pragmatic approach can be to deal with this recurring process in a sustainable way, while addressing the regulator’s concerns.
2. Governance: According to Article 1 of RTS 6, investment firms shall establish and monitor their trading systems and algorithms through a clear and formalized governance arrangement. Together we will take a look at the three specific requirements and how these can be met in a pragmatic and proportionate way.
3. IT Security: This topic can be found in Article 18 of RTS 6, ‘Security and limits to access’. While IT security itself is a priority for everyone in the business, incorporating it into internal governance and formally approved procedures often is not. Where to begin? We will let you know, based on the recently published AFM Principles and EBA Guidelines.