In my last blog, I talked about how with the new rules around MiFID II mean financial institutions need to work towards increasing auditability and transparency across all financial systems.
In order to do so, companies are required to set up automated surveillance systems that can:
- Detect market manipulation
- Set pre-trade controls on order entry
- Provide real-time monitoring
- Define post-trade controls
I also mentioned how TIBCO can help in solving these problems by use of pre-existing accelerators.
We have been successful in implementing our solution globally across many companies. Two examples are:
1. Major Global Bank where they were facing many challenges due to increased regulatory compliance requirements. They wanted to move to a proactive detection and remediation approach, to reduce the current large fines and reputational loss. With the regulatory model changes and constant evolution, their current vendor solutions were unable to keep pace. To solve this problem we created a single, correlated view of every service, hardware instance, business or market event and monitoring or logging event across the organization. This way we were able to provide the following benefits:
- A single platform that incorporated all different modeling and analytics languages
- Accessible to both data scientists and operational business users
- Scalable analytics to meet operational needs
- Optimization for processing requirements and cost control
- Incorporation of Big Data and specialized tools
- Correlating events in real time, analyzing:
- Hardware and Network Info
- Applications
- Business Information (Trades, Orders)
- Internal Services
- External Feeds
- Comparison of all of these activities to expected trends and models
With this comprehensive implementation, there was a significant reduction in errors and lower forensic costs. The cost saving of handling severity three outages (circa $1m/event) led to $36m/yr savings alone. There were also significant reductions in IT hardware and operational costs across the company. As a result of the marked improvement in client satisfaction, they saw an increased client flow of over 10%. Finally, the bank was then able to use analytics to improve client dialogs and delivered new projects in short order.
2. A Private Bank in Central Europe who had a poor understanding of trade visibility and struggled with time to market for new enterprise-grade applications including their real-time end-to-end surveillance. This blended trend analysis and market context based exception analysis to provide the key benefits of multiple regulatory regimes.
Using our platform they were able to build an end-to-end strategic trade surveillance system. The bank made significant savings because of the rapid completion of all its TIBCO applications without the need for large implementation teams. The platform helped developers to get more involved with the business and helped the business to stay close to the applications under development. Such was the level of success, they have been happy customers for nearly 10 years!
Read more about compliance in Capital markets in this article and hear our recent podcast here.
