Trading And Compliance Position Limit Management
Trading organisations are subject to scrutiny from an increasing variety of sources. Events leading to the so called “credit crunch” have pushed the whole area of financial regulation and trading control right to the top of the political agenda. Politicians need to show that the world of finance and banking Is under control and transparency is becoming paramount.Organisations which are unable to demonstrate that they are capable of controlling their trading businesses, preventing undesirable trading activities and reporting on them will increasingly find themselves in the full glare of public scrutiny.
Dodd Frank and Basel 3 legislation are driving the need for greater reporting transparency and control over trading activities and many current system are simply not equipped to provide the information or carry out the actions required to ensure compliance with such legislation. This means that the typical trading organisation will have to spend less time trading and more time explaining how and why it has traded
To meet the increasing compliance needs of the organisation Tradelogic has produced its Compliance Limit Management System, CLMS. This is a rules based compliance platform for carrying out compliance policing and reporting. The system can be connected to any number of trading platforms and identify and delete orders placed by traders which exceed limits or break rules set by the appropriate authority within the organisations.
- Can operate in standalone mode (for the organisations maintaining their own limits) or “base/satellite” mode for organisations which wish to control satellite organisations (e.g. intermediary’s business clients).
- Powerful Rules based compliance Engine. The system is supplied with five rules; Quantity rule, Tenor rule, Price rule, Aggregate quantity rule and Enhanced Aggregate Quantity Rule.
- Existing compliance rules can be extended and other compliance rules added
- Rule violation leads to order removal and notification of violation.
- Rapid notification of limit violation via e-mail, alerts window and logging. Limit violations identify the order, who placed it, which rule triggered and why.
- Can respond faster to an order than a trader can deal it.
- Full audit trail of all system actions.
- Reports can be assembled showing what violations have taken place and who was responsible.