Question on cross-border data compliance for algo trading

asked by u/sneha_khan · 21d · 3 answers

Hey everyone, I'm trying to get my head around the specifics of data residency requirements for algorithmic trading, particularly when dealing with EU client data but running algos on servers physically located in, say, the US or Singapore. Is the simple answer just to ensure the execution venue is within the EU, or are there more granular considerations for the data itself (trade history, client profiles) even if no personal identifiers are present? Wondering how others are navigating this without building out a global server farm.

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Top answers

  • u/emre_r· 1 pts· 20d

    It's not just about the execution venue. You need to consider where the data is stored and processed at every step. GDPR Article 44 on international transfers is the core issue here; a simple server location change won't cut it without proper transfer mechanisms.

  • u/wei_zhao· 1 pts· 20d

    It's definitely more nuanced than just the execution venue. You'll need to consider where the data for backtesting, optimization, and even real-time decision-making resides, and how that aligns with GDPR if you're dealing with EU client data, regardless of where the algo itself runs. Have you looked into specific clauses for data transfer mechanisms like SCCs?

  • u/siti.vo· 1 pts· 20d

    The execution venue location is key, but you also need to consider where trade history and client data are processed and stored. GDPR and MiFID II have strict rules on data transfers outside the EU, often requiring specific safeguards or data localization.

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