The Technical Committee of the International Organisation of Securities Commission (IOSCO) has published a final report – principles for direct electronic access to markets (DEA Principles) – containing principles designed to guide intermediaries and markets in relation to the areas of pre-conditions for direct electronic access (DEA), information flow and adequate systems and controls. The report is based on an analysis of market and regulatory developments and other responses received to the original consultation report having policies on direct electronic access which identified and discussed the benefits, potential risks and concerns associated with DEA. The principles include the following:
- minimum customer standards;
- legally binding agreement;
- intermediaries responsibility for trades;
- customer identification; and
- adequacy of systems.