Trade Reconstruction

Enhanced Trade and Order Reconstruction for Financial Services Compliance

cOMMS CALLOUTS

 

Recreating the conditions surrounding a trade or order

The regulator can at any point ask you to recreate all the conditions surrounding a trade or order. This can be for a specific trade with a specific client, or every trade over a particular period of time, and you may only be given 72 hours to comply. 

With SteelEye, your data is automatically indexed and made instantly searchable and retrievable, so it only takes minutes to bring together the relevant information relating to an order or a trade.

BACKGROUND

Under MiFID II, Dodd-Frank and other global regulations, financial services firms are required to store records of all activities and transactions, show evidence that they acted in accordance with their best execution policies and demonstrate continuous oversight and control, among other obligations. 

As part of the regulator's mandate to ensure that firms are meeting these requirements, they can request a copy of all the details surrounding a particular trade or order, or even every trade over a particular period of time.

This requires firms to have the ability to quickly extract information relating to their trading and business activity. However, considering the wide range of events that can relate to a single trade, this can both complex and arduous.

Further, as it stands most financial institutions manage their data across a multiple platforms, including order management, trading, compliance and CRM systems.

While these platforms make up the information needed for trade reconstructions, and individually meet the regulatory record keeping obligations, they don't tend to communicate. Add to that the fact that many of these operations are often completed by multiple people, and bringing together all the relevant data for a trade reconstruction is prohibitively difficult.

As a result, it can take several days for a firm to audit, identify and export the relevant information requested by the regulator, making it nearly impossible to meet the deadline.

Smarter Compliance

SteelEye automatically brings together all your communication, trade and order data under one lens. Once in the platform your data is indexed, normalised and mapped, making it instantly searchable and retrievable. As a result, you can sleep sound at night, knowing that if the regulators demand you reconstruct a trade, you can quickly prove exactly how, when and why the trade took place.

How it works

At single order or trade resolution, all transaction data can be overlaid with related communications data as well as independent pricing. At the click of a button, these records can be added to an existing case or used to create a new case. Once you have added all relevant records to a case, this can then be easily exported from SteelEye, ready to be submitted to the regulator. As a result, your trade reconstruction takes moments rather than days.

Trade Reconstruction is part of SteelEye's Core Package, which also includes Record Keeping and Trade and Order Analytics

Other products

Core package

Trade surveillance

Communications surveillance

Regulatory reporting

Best execution

Trade Reconstruction
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