Compliance Radar blog

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Whitepapers

Behavox reinvents regulatory compliance with collaborative exchange


Alex Viall 18 Jan 2017

Behavox is transforming capital markets compliance with the introduction of the Conduct Risk Exchange (CRX), which facilitates the sharing of detection algorithms between institutions and regulators, creating the market standard to collaboratively protect against misconduct and other generic risks.

The approach is exactly equivalent to the development of anti-virus software; institutions with more learning and precedent in richer data sets contribute their algorithms and allow those with different experiences to benefit. Regulators can instantly distribute their own unique “knowledge” through the platform to the whole market for the first time. It is the perfect example of collaboration between regulated and regulators, in a non-competitive environment.



Conduct, culture and compensation – is the link getting tighter?


Alex Viall 29 Jan 2016

Conduct and culture are the two words that seem to be hanging on everyone’s lips in the regulatory financial services world. While the biggest banks examine how to embed the right culture, the regulators are desperately hoping this will improve conduct in a sector where public trust is again worryingly low. At the same time, the spectre of the way that capital markets employees are compensated is being linked to these elements as a potential solution.

The challenge is the relative novelty of these concepts, the paucity of guidance available from regulators, and the feeling that the right approach has to be tailored very much to the business model and risk appetite of each individual institution. Senior management will have to be front and centre in this process, in the knowledge that the regulators are watching what they do carefully. The regulators have stated that this is a problem that the industry must fix itself. In this whitepaper we examine the debate and provide insight on the direction it may take.



Do you know what’s in your archives? Find out before the regulators do

Alex Viall 30 Sep 2016

MAR has been in force in the EU now for 86 days and counting; MiFID II is not far behind. These directives widen the scope for potential market abuse considerably, as well as the requirement to capture the data that evidences it.

ESMA and the UK’s FCA have made it plain that every firm now needs an automated surveillance system to achieve compliance.

We know that very few institutions have tackled MAR effectively yet. Some have adapted existing systems; others are thinking about “automating”; the majority seem paralysed and are waiting for FCA guidance, the first big fine, or a recommendation from their peers.

Our extensive analysis of all the enforcements relating to market manipulation/abuse in the US/EU since 2002 shows that virtually all the best evidence that has been used in court or by regulators in their actions, has been derived from communications. This provides the trail, the context and the development of the problem – the transaction is the smoking gun but by then the damage has already been done.

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