Recognizing the mutual fund industrys need to combine technology and compliance solutions in order to curb trading abuses, IBM and Mantas, Inc. have joined to preemptively cure the industry of the transgressions that have dominated the headlines since early September.
Mantas, which provides compliance solutions for both the financial services and telecommunications industries and IBM, the IT giant, said they "will focus initially on a combined technology and services solution that addresses the recent mutual fund scandals involving trading abuse including late trading, market timing, self-dealing and breakpoint violations."
But beside just trying to correct the more prominent recent problems, the two companies said that fraud detection, money laundering, trading compliance and broker surveillance will also come under their jurisdiction. The system will take existing IBM systems and mesh them with compliance solutions designed by Mantas.
"A large percentage of the abuses leading to damaged reputations and investor losses would have been detected by appropriate use of available technology and more aggressive compliance monitoring," said Mantas CEO Simon Moss.