GDPR and Data Protection in Trading: What Every Company Needs to Know
GDPR compliance is not just a concern for technology companies. Trading companies that hold personal data about counterparties, employees, or customers face real compliance obligations and increasingly active enforcement.
The General Data Protection Regulation (GDPR), which has applied since May 2018, is the most comprehensive data protection regulation in force globally and has extraterritorial effect on any company processing personal data relating to EU residents — regardless of where the company is located. For trading companies with European operations, European counterparties, or European employees, GDPR compliance is a genuine legal obligation.
Understanding what GDPR requires begins with understanding what constitutes personal data in the trading context. Many trading companies have assumed that because they deal primarily with corporate entities rather than individual consumers, GDPR does not significantly affect them. This assumption is incorrect.
Business contact information — the name, email address, phone number, and professional details of individual contacts at counterparty companies — is personal data under GDPR. KYC documentation that includes individual directors' passport copies, addresses, and financial information is personal data. Employee records are personal data. Any correspondence with named individuals is potentially in scope.
THE LAWFUL BASIS QUESTION
For each category of personal data processing, trading companies must identify a lawful basis. The available bases include: contract performance (processing the personal data of a counterparty individual that is necessary to perform a contract with them); legitimate interests (processing for genuine business purposes where these are not overridden by the individual's privacy interests); legal obligation (processing required by law, such as KYC requirements); and consent (where the individual has explicitly agreed to the processing).
For most business contact and counterparty data, legitimate interests is the most appropriate basis. But legitimate interests requires a genuine balancing test: the processing must be genuinely necessary for a legitimate purpose, and the purpose must not be overridden by the individual's reasonable privacy expectations.
Our editors curate the most important stories every morning. Join 50,000+ professionals who start their day with Certivade.
No spam. Unsubscribe any time.
Standards Desk at Certivade delivers expert analysis and breaking coverage across global markets, trade intelligence, and business strategy — combining deep industry expertise with rigorous reporting standards to provide actionable intelligence for business leaders worldwide.
