Compliance and data analytics firm SteelEye has released Auto-Trade Reconstruction, a solution that reduces the time it takes for a firm to reconstruct a trade from days to seconds.
Under MiFID II, MAR, Dodd-Frank and other global regulations, authorised firms can be asked by the regulator at any point to reproduce the records that relate to a trade or client order, or a number of trades and orders over a particular time frame. This requires them to bring together all the transaction/order details, conversations, emails, meeting minutes and more to “reconstruct” the scenario. With datasets spread across siloed platforms, however, SteelEye says meeting the typical deadline of 72 hours is a significant challenge for most firms.
By leveraging artificial intelligence, machine learning, and advanced data relationships all within a single platform, the new service reduces the risk of regulatory scrutiny for firms and personal liability for senior managers. Once the SteelEye platform has captured all of a firm’s structured and unstructured data across any asset-class, communication type and system, it unifies it under a single lens, where it is cleansed, normalised, indexed and made instantly retrievable. The Auto-Trade Reconstruction solution then looks at any given scenario or piece of data and brings together all information that is deemed to be relevant, such as related communications or transactions as well as independent pricing.
By accepting or rejecting these “suggestions” the system learns as it goes along, becoming better at reconstructing each scenario, which means firms can immediately dive into a trade or order and automatically see all the related phone calls, meetings, WhatsApp messages, as well as finding out information about the trade/order itself. At the click of a button, these records can be added to an existing case or used to create a new case, and thereafter easily exported – the solution also brings in external market data and news to enable clients to monitor suspicious trading volumes, using data from sources such as social media Twitter feeds.
“The requirement to reconstruct all the conditions surrounding a trade or order requires firms to identify, locate and bring together a wide range of information, quickly. With many firms professing that such a request would take them over two weeks to complete, this has been an area bringing a lot of worry and stress to compliance teams,” says Matt Storey, chief product officer at SteelEye. “With our auto-trade reconstruction this is now completely automated and effortless.”