Annual FWB® Trading Participant due diligence

Release date: 09 Jan 2023

001/2023 Annual FWB® Trading Participant due diligenceXetra Circular 001/23

1. Introduction  

Frankfurter Wertpapierbörse (FWB®, the Frankfurt Stock Exchange) is required to verify the due diligence of its Trading Participants on an annual basis in order to ensure that all Trading Participants are compliant with the requirements of the Frankfurt Stock Exchange applicable to the usage of their electronic order systems.

The applicable regulatory requirements are stipulated in Commission Delegated Regulation 2017/584 of 14 July 2016 supplementing Directive 2014/65/EU of the European Parliament and of the Council regarding regulatory technical standards specifying organisational requirements of trading venues.

Article 7 of Commission Delegated Regulation 2017/584 obliges trading venues to set out conditions for using its electronic order submission system by its members and to conduct a due diligence assessment of their members against those conditions on an annual basis. These requirements are transposed into § 16 (2) of the Exchange Rules of the Frankfurter Wertpapierbörse (FWB).

In addition, the Due Diligence Statement shall verify compliance with § 35 (2) of the Exchange Rules of the Frankfurter Wertpapierbörse (FWB) outlining the requirements for usage of Input Devices outside registered Trading Locations of the admitted company.

Please find the exchange rules on the Xetra website www.xetra.com under the following path:

Rules & Regulations > Exchange Rules for the Frankfurter Wertpapierbörse.

2. Required action

Trading Participants of the Frankfurt Stock Exchange are required to submit the Due Diligence Statement by latest 10 February 2023.

The Due Diligence Statement is available here.

Central Coordinators are requested to enter their company details, the personal PIN (please note that the PIN was sent to the Central Coordinator and is the same that was used to submit the Readiness Statement), tick the respective boxes and submit the Due Diligence Statement. 

Should you have lost your PIN or not received a PIN, please contact your Key Account Manager.

Should you have any questions regarding the Due Diligence Statement, please contact your Key Account Manager or client.services@deutsche-boerse.com.

3. Details of the Regulation

Frankfurt Stock Exchange’s annual Member Due Diligence Statement relates to the audit period from January to December 2022 and covers the following categories:

  • Criteria as stipulated in the Exchange Rules for FWB, in particular Section III (Visit to the Trading Halls and Exchange Trading)
  • Admission criteria as stipulated Article 7 of Commission Delegated Regulation 2017/584 (Due diligence for members of trading venues)
  • Requirements related to appropriate testing of the Member's trading system, trading algorithm or trading strategy in accordance with Article 9 - Conformance testing of Commission Delegated Regulation 2017/584
  • If applicable for your company, requirements as outlined in Commission Delegated Regulation 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
  • If applicable for your company, requirements related to appropriate testing of the Member's algorithms to avoid disorderly trading conditions in accordance with Article 10 of Commission Delegated Regulation 2017/584
  • If applicable to your company, requirements related to the requirements for the use of Input Devices outside registered Trading Locations of the admitted company pursuant to § 35 (2) of the Exchange Rules of the FWB.

Further information

Recipients:

All Xetra® Trading Participants 

Target groups:

Traders, Security Administrators, System Administrators, Nominated Persons, Central Coordinators, Compliance, General

Contact:

Your Key Account Manager, client.services@deutsche-boerse.com

Web:

www.xetra.com

Authorised by:

Melanie Dannheimer, Dorte Schneider (On behalf of the Management Board)


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