Remaining compliant is an incredibly important thing for your firm or institution to keep in mind. Unfortunately, with things like insider trading, fraud, money laundering, and other illegal or unethical practices running rampant, this is often easier said than done.
You need a solution in place that can monitor the activities of all who work with or within your firm. If not, plenty of unlawful activity might be going on right under your nose, activity that could threaten your business as a whole.
A good option for most is a piece of trade surveillance software that can monitor activity and protect your firm. The importance of trade surveillance cannot be overstated, especially when it comes to keeping your firm compliant and within the confines of the rules.
With that in mind, this article is going to go through some of the specific benefits of using trade surveillance software to achieve compliance.
Makes It Simple To Monitor All Types Of Trades
One of the first benefits of comprehensive trade surveillance software is that it simply makes it easy to monitor a wide array of trading activities. Unfortunately, trying to monitor everything manually is an incredibly difficult task that will often take a lot more people, time, and money to do well. Even then, things are likely to be missed or slip through the cracks.
Using software can drastically improve efficiency, and make it much easier to keep tabs on your trades of all shapes and sizes. Many parts of the process can be automated, and it is a much more modern approach to monitoring.
These tools can watch for insider trading, for market manipulation, money laundering, and even conflicts of interest. With things like insider trading being quite prevalent, you need to be on top of things when it comes to monitoring.
No matter what policies you have in place, or what you need to watch for, trade surveillance software is an eloquent solution.
Allow You to Customize Alerts
Another great benefit of this type of software is that it can often let you customize the alerts that you receive to notify you of various rule breaks. Every firm is different in terms of what sorts of trades are normal and which will arouse suspicion. A certain trade might be relatively normal at one firm, but very out of the ordinary for another.
Being able to set and customize what gets flagged can ensure you are only being notified about what is important and helps to make sure that nothing gets missed. These tools often let you select what trades are worthy of alerts, and many can also automatically notify the proper individual or team who can handle the resolution.
Many of these solutions are also able to catch and alert you of things or behavior that you may not inherently see as fraudulent, which helps you keep up with new or cutting-edge schemes utilized by bad actors. Without intelligent alerts in place, there is a good chance some fraudulent activity will slip by undetected.
Great Data Reporting and Visualization
Trying to keep tabs on everything going on trade-wise at your firm can be a tall task without software in place to help. There are thousands of trades being done (or more) and many people making them, and as such, it is hard to focus on what matters.
This is often where software comes in, as it can provide an easy-to-follow visual interface and various dashboards to help you track and view anything you’d like. Also, the data that this software creates is instrumental in identifying trends, seeing patterns, and generally learning more about your firm and the trades being made.
In addition to the data itself, this software often helps visualize the data to help people better understand and follow the trading landscape within your firm and track important metrics.
In conclusion, there are many benefits of using trade surveillance software that can keep you compliant and ensure that investments across your organization are monitored. Without having it in place, you could run into compliance issues that are a nightmare to deal with.