Voice surveillance is the most difficult channel to monitor due to various issues. Voice comms in a trading floor environment produces lots of background noise as well as multiple speakers on recorded channels. Storing the comms also requires more server space and can become a costly addition to any existing solution, if not properly evaluated.
Although most financial institutions store voice communications, in a recent survey by Intelligent Trading Technology at their New York 1LoD event in April 85% of those surveyed didn´t proactively monitor their voice channels. This is something that’s not only dangerous from a compliance point of view but also puts those institutions at risk of missing vital intel and information about the productivity of their business.
Selecting the right vendor is critical for the reputation of your company and its success.
We´ve put together 5 tips to determine the best voice surveillance solution for your trading floor. Here they are below:
1. Define your trading floor population
Part of the new regulation requires that traders are not the only individuals to have their conversations monitored, but all members involved in trading and negotiating financial products regulated by MiFID II.
2. Integrate with your current infrastructure
It is important to maintain current turrets and integrate with systems that don’t prevent employees from working and generating revenue. Integrate with systems that have open APIs and connectors and that can define the best integration strategy with your IT team.
If they are not compatible, you will have to contemplate further deployments to make it work.
3. Identify how the solution processes data
Communications surveillance platforms typically include many features which should be considered. Does your solution give you the correct analytics and tools to take informed decisions?
4. Make sure any solution fits your specific trading floor needs
Your chosen surveillance software must be able to adapt to your industry, products and needs, and be adjustable to future regulatory changes.
5. Can you detect fraud across the whole trading floor?
Some solutions available on the market allow you to record all communications, but only process and analyse a sample of them. This may comply with some regulatory requirements, but it can be problematic from an operational surveillance point of view. Any piece of information missed in the present can be worth millions in the future.
Interested in knowing how a leading Energy Trading Company monitors 100% of their voice communications? Download our free Case study here and find out how they managed to reduce their false positive alerts by 80%, in just 3 months.