The first comprehensive insider trading software, which tracks and analyzes trading in real-time and detects suspicious trades, has been introduced by BasisCode Compliance LLC, a leading provider of regulatory compliance software solutions.
Insider Trading Manager addresses a major and prevalent risk faced by financial services firms today in terms of reputational damage and even survival. The software provides a complete work flow analysis totally integrated into a firm’s compliance monitoring system.
“Unlike the limited number of insider trading modules available today which are all event-driven and generate huge numbers of false positives,” said Carlos Guillen, president and chief executive officer, BasisCode, “Insider Trading Manager is not only a more effective monitoring system but also provides a set of productivity tools that vastly improves the efficiency and productivity of insider trading surveillance.”
As an integral part of a firm’s compliance monitoring system, Insider Trading Manager monitors all of a firm’s trading activity – for its clients and its employees’ accounts. Monitoring is conducted on an ongoing basis and is not activated solely on the basis of a material event.
The software enables firms to detect the misuse of material non-public information by identifying potentially illegal transactions using patent-pending filtering mechanisms designed to reduce the probability of false positives and enhance the accuracy of items that warrant review and includes a complete workflow and audit trail. The process saves time, reduces risk and provides for more meaningful analysis that can be applied to both firm and employee transactions. The improved efficiency allows users to expand their oversight to a broader range of activities while providing increased risk management assurance.
“Insider Trading Manager is a vast improvement over the insider trading surveillance systems in use today which review pre- and post-event trading records only after a key event takes place,” said Guillen. “This requires an enormous effort in time and financial resources to sift through thousands of trading records to identify what we call ‘one needle in a haystack.’ With Insider Trading Manager, an investigation or review is triggered only when suspicious trading is detected by the system’s ongoing monitoring of trading, and then a news search is initiated to determine whether there is any connection. The time and paperwork savings that result from the software are at least equal to the cost of one or two (or more) full-time employees equivalent.”
Prospective users of Insider Trading Manager include financial services and investment management firms, publicly-traded companies, law and accounting firms, boards of directors and consulting firms. The cloud-based software solution is available on a standalone basis or as part of an integrated suite where it can be used in combination with the BasisCode ComplianceTM and/or BasisCode Personal Trade Manager, both part of the company’s compliance suite of products.
BasisCode’s management team has decades of technology, financial and compliance expertise in designing, developing and managing enterprise compliance systems for a broad spectrum of organizations, from small asset managers to large institutional investors.