Fonetic today announced that its ATRTM integra automatic trade reconstruction solution uniquely integrates banks’ Front, Middle and Back offices to ensure fast and early detection of mismatched trades. This new capability enables banks, brokers, financial institutions and independent advisors to save millions of dollars that might otherwise be lost on a desk’s P&L.

“Heads of desks jobs just got a whole lot easier and their desks a whole lot more profitable – another crucial step to restoring shareholder confidence at a time when more and more banks are reporting less than desirable results,” said Jose Luis Maupoey, head of trading product management, Fonetic “Additionally, in order to effectively demonstrate regulatory compliance in a post financial-crisis world, where regulatory demands are becoming greater than ever before, banks simply cannot even begin to compile the data to address order and trade reconstructions requests let alone try to manually reconstruct trades. Banks are generally accepting that they must now turn to the right technology to help them to meet these demands.”

In a fast moving environment it is not a surprise that mismatched trades are a common challenge and when a trade booked for $10m against the actual trade (completed on the phone or by chat) is booked at $100m in a fast moving market, the consequences are costly. It is a scenario that is often not detected until reconciliation when the damage is done and the chance for immediate remedial action lost. With ATRTM integra now linking Front, Middle and Back office, firms can accurately detect mismatch trades because ATR™ integra has the ability to understand what is said in all communication and, more importantly, when the trade has been concluded in a voice call. The solution reports the early detection, (within 15 minutes), before the market movement drives greater losses enabling swift remedial action and mitigating large losses.

Launched earlier this year, ATRTM integra is the only linguistics-based trade reconstruction solution to automatically process, analyse and match voice and text communications with their corresponding trades utilising trade data and metadata in addition to the content of the communications – even when the content of the conversation is along the lines of “Hi how are you? Mine.”

“The Fonetic solution is attracting a great deal of attention from banks, consulting firms, systems integrators and analysts, globally,” said Simon Richards, CEO, Fonetic USA. “Perhaps there really is a move towards not just looking for regulatory compliance but also a real drive to managing risk. However, before risk can be measured it needs to be quantified, and the only way to measure trading risk is to fully analyse all communications that reveal trading behaviours and then decide what to do with it.

“With new rulings on transcriptions order reconstruction, contextual comprehension of communications and greater demands on retention from MiFID II in Europe adding further financial complexity, more than ever the financial community needs a technology partner it can rely on; one that helps to eliminate wasted time, unnecessary errors, misdirected effort and not least, money lost from trawling through multiple forms of communications data when the regulators demand to see records of orders and trades,” continues, Simon Richards. “The smart money arms itself defensively by seeking a technology partner such as Fonetic that can provide peace of mind, freeing it to get on with trading and properly managing risk.”