Market Maker Improves Compliance & Risk Management

Challenge

Rising Cost and Complexity of Compliance with Emerging Regulation

  • Daily review of reports from over a dozen execution venues covering thousands of instruments
  • Reactive compliance checking when each venue calibrated its own OTR limits and fines per instrument
  • Multiple automated trading strategies that combine into a firm-wide OTR for each venue and product
  • Creation of a consistent, proactive oversight without dedicating significant resources to develop predictive analytics and risk assessment tools

Solution

Continuous OTR Risk Assessment and Predictive Alerting

  • Streamlined firm-wide OTR measurements and calculations by dimensions of venue, market, instrument, and participant type
  • Machine learning-powered analysis of per-instrument OTR behaviors and predictive forecasting and alerting of end-of-day MiFID II violations
  • Streamlined collaboration between compliance, business, and technology teams to identify strategy or performance changes to balance management of intraday compliance risk and execution outcomes
  • Independent creation of venues’ end-of-day per market, per instrument reporting, simplifying validation and reconciliation efforts
  • Complete, forensic audit-trail record of order lifecycle messages and analysis to simplify inquiry response
  • Flexible, modern analytics platform with machine learning for diverse trading business intelligence use cases such as order flow analytics, operations, and quantitative analysis

Results

Eliminate Compliance Risks More Efficiently

Number of proactively identified and managed compliance issues
Staff productivity
Mean time to respond to regulatory and client inquiries
Regulatory tail-risk through delivery of continuous independent analysis
Time to market / value relative to our solutions
DevOps Opportunity Costs

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