REG FOCUS. Identify and reduce the risk of market abuse

Transcription

1 REG FOCUS Identify and reduce the risk of market abuse

2 REG FOCUS A single solution to the regulatory challenges brought about by current market manipulation and insider trading legislation and designed specifically for the buy-side The current focus of the SEC, FERC, CFTC and numerous other regulatory bodies both within the United States and in other jurisdictions (principally the EU) aims to increase market integrity and investor confidence within what is rapidly becoming a consistent global framework. Few would doubt that these are worthy goals but they greatly increase the compliance burden and associated costs for asset managers who can no longer simply rely on the control provided by their brokers. Regulatory focus is now wider in scope, covers more financial instruments and includes more trading venues. Regulators have also extended their focus to cover attempted manipulation and to prohibit abusive behavior regarding benchmarks. In practical terms, there are now significant challenges for the buy-side. All asset managers need effective compliance policies and a robust framework to identify and control market manipulation and insider trading. These must: Minimize the risk of receiving but not identifying material non-public information Monitor wall crossing or giving selective access to material non-public information Use pre-trade controls to reduce the risk of market manipulation and insider trading Conduct post trade surveillance using appropriate systems to monitor and investigate suspicious orders and trades Detect suspicious transactions influencing a benchmark, the price of funds or any derivatives. Regulatory compliance requires asset managers to identify, monitor, map and report on a broad range of behaviors. While this is crucial, it is also a major undertaking requiring people, technology and ongoing commitment. Many business processes and supporting systems need to be reviewed, modified and tested. Is there an alternative to a costly in-house project?

3 Service highlights A specialist managed service for buy-side compliance officers RIMES RegFocus offers a sustainable, cost-effective solution to the many complex challenges of regulatory compliance. Our service is designed specifically to reduce the risk of insider dealing and market manipulation, in accordance with SEC Rule 10b-5, CFTC Rule and all other applicable rules. With its unique, powerful detection capabilities, RIMES RegFocus is designed to streamline and simplify regulatory compliance for buy-side firms. In practice it is a managed service designed by compliance officers for compliance officers. RIMES RegFocus sources, captures and maintains all the necessary data elements to facilitate a comprehensive review of all order and trade activity across related legal entities. By using RIMES RegFocus, a compliance officer can achieve a commanding view of all regulatory obligations and is empowered to act quickly and confidently. RIMES RegFocus is the only specialist service designed to allow the buy-side to meet current regulatory surveillance obligations As a fully managed service, it offers a new, transformational approach to regulatory compliance that includes: RIMES RegFocus at work RIMES RegFocus translates regulatory guidelines and rules governing trading conduct into alerts to identify potentially abusive order and trade behavior accurately and early. Using powerful algorithms and analytics, our service monitors and detects behavior across multiple exchanges and asset classes, including ETFs, benchmarks, indices and portfolio rebalancing activities. The service accommodates single order or trade and basket monitoring and can be tailored to suit individual roles and management hierarchies.

4 Data coverage and management Insider list management Market manipulation and insider dealing monitoring Advanced cloud based technology Comprehensive coverage, including 85 global equity, commodity and derivatives trading venues Global surveillance coverage for OTC instruments, including FX and fixed income Targeted regional alerts that incorporate jurisdictional regulatory and market-specific parameters. Insider information reception portal that enables an individual or group to report potential insiders manually or though list management Watch and restricted lists to reduce the risk associated with wall crossing Warning mechanisms for insiders and automatic adjustment of surveillance tools Pre-trade controls, including near realtime reports on exposure to firms on watch list during close period Timely reports on large corporate actions affecting large positions owned by funds. Comprehensive regulatory monitoring framework that prevents or detects orders or trades that could have been executed on the basis of material non-public information A full regulatory monitoring framework helping to prevent and detect orders or trades that are intending to manipulate the market Shows the actual impact on the market, benchmark or fund and the potential benefit for the fund generated by the offense. A fully scalable solution that grows with the business Comprehensive reporting, including suspicious transaction reporting, full investigation and audit trail functionality Personalized and intuitive dashboard Integration with existing systems regardless of technology. Discover more rimes.com/regfocus

5 Why choose RIMES RegFocus? RIMES RegFocus At a glance RIMES RegFocus offers a new, strategic approach to regulatory compliance for the buy-side. The service offers comprehensive regulatory coverage and a team of RIMES regulatory experts constantly monitors new buy-side regulatory obligations. By choosing RIMES RegFocus a firm can keep pace with changes in regulations and insulate itself from technology change. RIMES RegFocus offers a single solution to the many complex challenges of regulatory compliance. Users benefit from an expert approach to compliance that has been defined and refined at the heart of the buy-side. As a fully hosted service, RIMES RegFocus requires minimal capital outlay and new clients can be up and running in a very short time. Our consultative approach and proven methods ensure a smooth onboarding process with no disruption to existing systems or business processes, regardless of systems environment or data formats. RIMES RegFocus builds on the success of RIMES Managed Data Services (RIMES MDS), which offer a proven solution to the global data management challenge. Our managed services are continually proven in some of the world s most demanding investment management markets. A managed service offers a cost-effective choice for firms wishing to mitigate risk and boost operational efficiency. A subscription to RIMES RegFocus includes access to a team of compliance experts and a pool of expertise that is constantly enriched at the heart of the buy-side. In practice, RIMES acts as an extension of a client s own compliance department and offers a shortcut to best practice compliance. Compliance officers who choose RIMES RegFocus leave nothing to chance. Comprehensive monitoring of all qualifying financial instruments under United States and international regulatory requirements, including: 1 Transactions, orders and behavior of orders 2 Transferrable securities 3 Money market instruments, CDs and CFDs 4 Investment funds 5 Options, futures, swaps, forwards and commodities derivatives REG FOCUS

6 Best Managed Service Follow us LinkedIn RIMES Technologies YouTube RIMES Technologies Get in touch rimes.com/regfocus About RIMES RIMES is a specialist provider of services to investment mangers and asset owners worldwide. For over twenty years, RIMES Managed Data Services (RIMES MDS) have helped clients reduce the cost of managing financial data and mitigate operational risk. In 1996, we were a pioneer provider of managed data services using cloud technology; today our clients include 60 of the top 100 global investment managers and 8 of the world s top 10 custodians. North America New York (Headquarters) 84 Wooster Street New York NY USA Boston 51 Melcher Street Boston MA USA Seattle 1420 Fifth Avenue Seattle, WA Toronto 161 Bay Street Toronto, ON M5J 2S1 Canada EMEA London No. 1 Cornhill London, EC3V 3ND, UK +44 (0) Paris 13 avenue de l Opéra Paris France +33 (0) Nicosia Gerasimou Markora 3 Nicosia 1075 Cyprus for Reference Data RIMES Technologies Asia Pacific Sydney 88 Phillip Street Sydney, NSW 2000 Australia +61 (0) Shanghai 1105 China Insurance Building 166 East Lujiazui Road Shanghai, China Singapore 1 Raffles Quay Singapore Singapore By offering a transformational data management platform, RIMES MDS enables buy-side firms to improve their data quality, transform their data management capabilities and boost their business responsiveness. By choosing a managed data service, a firm can remove the burden of data management without surrendering control. RIMES MDS eases the regulatory compliance burden by improving data governance and transparency. All buy-side firms face a growing regulatory compliance challenge and feedback from our clients confirms that market manipulation and insider dealing surveillance represents a significant and growing regulatory burden. We are ideally positioned to offer a strategic regulatory surveillance solution. RIMES RegFocus builds on the proven methods and technology of RIMES MDS but addresses the specific needs of compliance officers who must comply with the ever increasing regulatory challenge. RIMES RegFocus is fully hosted and managed by RIMES. It offers a scalable solution that removes the need for onsite data storage. RIMES ensures that its clients fulfill their regulatory record keeping obligations for lists and suspicious reporting. RIMES clients can also tap into a wealth of data management and compliance expertise that is unmatched within the industry. IFM BEST BUY-SIDE MANAGED DATA SERVICES PROVIDER - USA AWARDS 2015 RIMES Technologies RIMES Technologies 2016