UAT, a Denver-based technology and consulting company, in conjunction with Capital Markets Consulting, LLC, today introduced the HiLo Engine, the first technology designed specifically to enable pre-trade compliance, real-time regulatory oversight, and significant brokerage cost savings for sub-advised investment platforms.
The HiLo Engine, or HLE, is an important component of UAT's new Unified Compliance and Control System (UCCS) for sub-advised platforms. In addition to pre-trade compliance reviews, the HLE will assist Advisers in lowering brokerage costs by executing certain trades through a low-cost brokerage network. UAT selected Chicago-based Capital Markets Consulting, a leading builder of custom software solutions for the global financial industry, to develop the patentpending application.
"The HiLo Engine technology is critical toward solving the compliance deficiencies the subadvised industry has battled since the mid-1970s," said Tom Warren, President of UAT, Inc. "With the help of Capital Markets Consulting, we're providing a turnkey system that brings compliance supervision up to existing SEC requirements, lowers brokerage costs, and provides a number of new and attractive business efficiencies."
Although organizations that utilize external asset management have historically employed posttrade oversight of their external money managers, the current market environment demands more strict regulatory supervision, greater cost controls, and increased operational efficiency. UCCS and the HLE provide the first comprehensive solution to all of these challenges.
"The development of the HiLo Engine technology provided us with a true pioneering opportunity in the area of trading and compliance technology," said John Barun, President and Chief Executive Officer of Capital Markets Consulting. "We're delighted to partner with UAT in developing this ingenious new technology and helping to solve so many longstanding problems for the sub-advised industry."
Types of sponsors expected to benefit from the UAT and Capital Markets Consulting partnership's ground-breaking development include insurance companies, pension plans, bank trust groups, 401(k) providers, mutual fund companies, foundations, and endowments.