Rapid trade reconstruction is mandated by the global-reaching MiFID II, MAR, Code of Conduct and Dodd-Frank regulations, and in most cases with a demanding 72-hour turnaround.
To address these and other rigorous trading compliance requirements, NICE Actimize, a NICE (Nasdaq:NICE) company, is adding an innovative new Trade Reconstruction module to its Holistic Surveillance portfolio. The new Trade Reconstruction solution features advanced machine-learning analytics to classify and understand the content based on previous examples and patented automated correlation capabilities to link trade executions to trade conversations that can cut trade reconstruction time from days to minutes, and help firms improve responsiveness to regulators.
Trade Reconstruction is a costly, but necessary, regulatory task for financial services organizations (FSOs) of all sizes. The volume and variety of trades, trade-related data and communications stored in many siloed systems, makes trade reconstruction an arduous and time-consuming process. Compliance analysts need to manually search for all relevant trade communications across different platforms, including voice, emails, and instant messages, as well as trade records and trade-related data. Additionally, analysts need to manually listen to voice recordings and piece together all of the individual elements to reconstruct the lifecycle of a trade.
NICE Actimize’s Trade Reconstruction solution dramatically simplifies this process by normalizing, analyzing, indexing and correlating data across all structured and unstructured data sources. By applying sophisticated analytics and correlation technology, it can determine which trade data and related communications are relevant for the trade reconstruction across all linked data sources. The solution automatically pulls that information back in a fraction of the time, so firms can improve their responsiveness to regulators and internal stakeholders. Additionally, all trade reconstruction elements, including trade data, voice recordings and other electronic communications, can be retrieved in a single search, so the compliance analyst doesn’t have to navigate a multitude of systems.
Successfully deployed at several large financial institutions, NICE Actimize’s Trade Reconstruction module is already significantly reducing turnaround time and greatly increasing accuracy over previously used manual methods.
Joe Friscia, President, NICE Actimize “Under the weight of increasing regulatory pressures, financial services organizations need a better way to reconstruct the lifecycle of the trade. NICE Actimize has leveraged its deep experience in analytics, machine learning and data correlation to solve this problem, by accurately automating the reconstruction of trades.”