Trader Compliance 

The recent downturn in the economy and discovery that some traders had allegedly acted unscrupulously, has led to stricter regulations being put in place for traders to verify the ethical behaviour of the individual and the firm as a whole. In reality, these regulations are not isolated to financial traders but also include other forms of trading; energy, oil and gas, etc.

Trading organizations from the large to the boutique need to put into place processes that will help them to comply with these regulations, provide transparency to the regulated process, and deliver a standardized reporting mechanism. Call recording solutions are not just about providing proof or evidence after the fact, rather, they provide the architecture and tools to Monitor. Measure. Manage. your regulatory programs in a proactive manner.

Dodd-Frank Compliance

The Dodd-Frank Wall Street Reform and Consumer Protection Act has forced financial institutions to re-vamp their voice solutions or be subject to penalty. This important legislation has posed a significant problem for these firms. However, our Trader Compliance Suite provides a package of 3 distinct products which can be deployed individually, or as a turnkey solution, to help financial institutions achieve compliance.

The record-keeping rules outlined in the Dodd-Frank Act come down to 3 main regulatory requirements:

  • All communication between parties must be recorded
  • Must be able to reconstruct trades as they happen
  • All communication amongst the parties are to be monitored by the same rules

Penalties for Non-Compliance

Compliance reports must be submitted to the U.S. Securities and Exchange Commission (SEC) annually

Fines are placed on a subjective basis:

  • Tier 1- $5,000/day for violating a rule
  • Tier 2- $25,000/day for a reckless violation of the law
  • Tier 3- $1,000,000/day for purposefully violating a rule
trader compliance