Counterparty Manager provides an electronic questionnaire, training review and sign-off capability designed by a number of industry associations, including AFME/TIA, AIMA, ASIFMA, ATF, FPL and HKIFA, to help buyside firms and brokers gather and exchange the information necessary to meet their due diligence requirements. According to SFC rules, Hong Kong-licensed brokers are required to attest that their electronic trading systems are properly supervised, tested and risk managed, and their customers are required to acknowledge that they understand their brokers’ algorithms and other technologies.
The Equities Order Handling Questionnaire created by AFME and The Investment Association is also available to support the European Economic Area best practices for broker due diligence. Users can add customised questions or create an entirely new questionnaire to easily upload and distribute to trading partners through the platform.
Through Counterparty Manager, broker dealers can upload their answers as required in the questionnaire and disseminate them to their buyside counterparties. Buyside firms can then review the answers from each broker dealer and electronically acknowledge that they have done so. This acknowledgement will be transmitted directly to their counterparties, allowing sellside institutions to see which customers have fulfilled their compliance requirements.