NICE Systems (NICE) today announced the introduction of its Proactive Compliance Solution for Trading Floors, which enables financial institutions to monitor and investigate trade interactions.
This is to ensure compliance with regulatory requirements, like those from the Dodd Frank Act that mandate a complete audit trail for conducting comprehensive and accurate trade reconstructions. The solution uses analytics technology to identify infractions, detect and mitigate risk, and effectively manage day-to-day compliance.
The introduction of new regulations pose a challenge to trading floors, as traders must follow strict protocols while managing multi-channel interactions across turrets, mobile phones, email, instant messaging and social media. To address this challenge, capital market firms expect to invest billions of dollars in IT and operations spending in order to drive compliance, according to CEB TowerGroup analyst Gert Raeves.
"The Dodd-Frank Act is generating a storm of new regulations globally that forces trading floors to look for advanced solutions for proactive compliance," said Yochai Rozenblat, President of the NICE Customer Interactions Group. "NICE's innovative technology offers valuable cross-channel insights that enable financial organizations to makes sense of the vast amount of information exchanged during trade communications in order to more effectively manage compliance."
The NICE Proactive Compliance solution for trading floors combines NICE's speech analytics technology with Attivio's Active Intelligence Engine, to deliver near real-time insights on all interactions occurring across trade communications. If an infraction takes place, the system automatically generates an alert. The information gathered can also be leveraged by organizations to analyze and understand emerging risks in order to help prevent infractions from occurring in the future.
The solution also includes the indexing of all interactions, including calls, emails, and chats, as well as an intelligent investigation processes that automatically highlights compliance risks within these multi-channel communications. Using these capabilities, organizations can easily filter and search through every type of interaction in order to reconstruct trades for investigation and audit when necessary.