FIA’s e-Trading Working Group published a due diligence questionnaire intended to help investment firms subject to the Markets in Financial Instruments Directive II assess whether third-party vendors providing algorithmic software comply with regulatory standards. Under Regulation Automated Trading as recently re-proposed by the Commodity Futures Trading Commission, AT Persons may obtain a certification from third-party algorithmic software providers to satisfy their regulatory obligations regarding development, testing and monitoring of algorithmic trading systems. However, an AT Person would be expected to “conduct due diligence to reasonably determine the accuracy and sufficiency of a certification.” (Click here for details in the article “Proposed Regulation AT Amended by CFTC; Attempts to Reduce Universe of Most Affected to No More Than 120 Persons” in the November 6, 2016 edition of Bridging the Week.)