---
title: "Success Story: Market Maker Improves Compliance & Risk Management"
description: "Continuous OTR risk assessment and predictive alerting from Corvil simplifies intraday compliance"
type: "case-studies"
date: "2018-08-01"
source: https://www.pico.net/resources/leading-market-maker/
markdown_url: https://www.pico.net/resources/leading-market-maker.md
---

# 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](https://www.pico.net/products/corvil-analytics/) violations

- Streamlined collaboration between compliance, business, and technology teams to identify strategy or performance changes to balance management of [intraday compliance risk](https://www.pico.net/products/corvil-analytics/) 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](https://www.pico.net/products/corvil-analytics/) and analysis to simplify inquiry response

- Flexible, modern analytics platform with machine learning for diverse [trading business intelligence](https://www.pico.net/products/corvil-analytics/) 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