This white paper explores some of the specific issues that compliance teams face in managing their obligations for market abuse surveillance and communications oversight, transaction reporting, and best execution. It also looks at how SteelEye’s data-centric approach transforms how firms meet their compliance goals, reduce the cost of compliance in these areas and derive business value from their data.
The pressure on financial services compliance teams today is unprecedented. The amount of data created and stored has grown exponentially and so have the number of platforms that process and use this data. As a result, meeting regulatory obligations for trade surveillance, communications oversight, best execution and reporting has become increasingly complex and the cost of compliance has grown exponentially.
Regulators are increasing their pressure on timely and accurate compliance. An inability for financial firms to demonstrate that they have taken sufficient steps to meet their regulatory obligations can result in significant financial, operational, and reputational risk. The protect themselves, firms need to ensure they can effectively stay on top of their current and future obligations - which can only be achieved by putting data at the heart of compliance processes.
The impact of the Covid-19 pandemic continues to alter the risk and compliance landscape as well as the overall ecosystem in which financial firms operate. This has put increased pressure on compliance teams who have had to adapt to the changing environment by capturing, monitoring and analysing data in new ways - driving up the complexity and cost of compliance.
Regulatory change – paused in some areas during the crisis – is beginning to accelerate again. Regulators, who are becoming more technologically sophisticated, are also ramping up their use of data to monitor for market abuse and compliance breaches - which is increasing the potential for enforcement actions. To stay protected, compliance teams need to become more proactive.
Legacy technology and poor data management is making it challenging for firms to meet the digital transformation and automation goals needed to improve compliance processes. At the same time, senior managers who are conscious of new personal accountability rules are demanding better compliance procedures to improve the control and oversight they have over the areas they manage.
Most financial services firms have taken a siloed approach to addressing their compliance needs, prompted by the different implementation deadlines of regulations such as the second MiFID II, EMIR, and MAR. This has resulted in firms supporting several point solutions with duplicate data stores.
With a data-driven approach to meeting regulatory obligations, firms can use the same data to power almost all compliance processes – simplifying operations, increasing data integrity, and freeing up time and cost.
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