NYSE Technologies, the commercial technology unit of NYSE Euronext, has launched a post-trade monitoring tool for compliance officers.
The Trade Exception Radar is hosted in the NYSE Technologies U.S. Liquidity Center in Mahwah, N.J., The product is designed to offer fully automated surveillance and compliance capabilities across asset classes.
”It’s a post-trade risk management solution says Dan Romanelli, Vice President, NYSE Technologies.
Typically, compliance officers use end-of-the-day spreadsheets to collect and analyze trading patterns, Romanelli notes. “With Trade Exception Rader, however, they’ll be able to perform the same functions in near real time.”
As example, if a trader executes an inappropriate order -- a trade cancellation, say, that takes place after the cancellation deadline – the problem will be flagged on screen, Romanelli explains.
The tool also features an audit trail that includes surveillance of executed trades to alerting, escalation, resolution, and reporting all in sync with regulatory compliance. In addition, the Trader Exception Radar has the ability to interface with multiple Order Management Systems (OMSs) and provide real-time ID and alerting of trade exception problems.
“The Trade Exception Radar is a key piece of our full risk protection suite, which covers all aspects of trading controls from pre-trade to at-trade, and now to post-trade,” says Romanelli.. “This ultra-low latency trading tool simplifies the compliance, surveillance, and reporting process by allowing firms to manage all these different components in one fully integrated product.
Through our risk management suite, firms will now have the security of an all-inclusive monitoring and compliance solution that will allow them to focus more on their core business while maintaining regulatory best practices.”
The tool does not replace end-of-day spread sheets which are still needed to show regulators trading firm procedures, Romanelli explains
The Trade Exception Radar is a part of NYSE Technologies’ suite of trade monitoring solutions which also includes the Risk Management Gateway (RMG), a high throughput, low-latency routing and risk management engine with detailed risk checks and reporting capabilities.
NYSE Technologies now offers a turn-key risk protection suite available through the Capital Markets Community Platform that covers the full order execution cycle.
Laton McCartney writes for Securities Technology Monitor.