A scientific approach to regulatory compliance
JP Reis continues to champion a joined up approach to regulatory compliance. We have seen regulations rolled back by some administrations since 2008 and pragmatic easing applied during the lockdown phase of the pandemic response. However, we believe that the smart money remains on working towards real-time surveillance of trading activity. There are 3 main reasons:
- Financial regulations apply to overseas counterparties in your country.
- Some financial misdemeanours are criminal rather than regulatory issues, with even higher penalties.
- Real-time intelligence can help protect against costly rogue activity. On the flip side, you can identify copybook positive activities too.
Our Unified Compliance service has evolved since its inception in 2014. We still perform emergency bulk recording retrievals among a range of E-Discovery activities but our focus is on a scientific, data-driven approach to compliance.
The truth is that analyzing the conversations leading up to a transaction doesn’t reveal much, even when performed in real time. Rogue traders and market manipulators break the rules knowingly and wouldn’t be caught talking openly about their nefarious activities. This means that even the most sophisticated voice analytics will fail to find anything suspicious.
Our solution looks for anomalous blips in trading data. The diagnostic algorithms for this run in almost real-time. By cross-referencing the time from this data with voice recordings, and saved data from other channels, patterns, codes and individuals can be identified.
Every case differs based on your current technology portfolio and working practices. Contact us to see how our unique service offering could help you get the competitive edge.