The biggest changes in the financial sector have all come in the last 11 years and have been accelerated by the changes in worldwide regulation that resulted after the financial crisis in 2008. Fast-forward to 2019 and a lot has changed. Sandy Broderick, Product Advisory Board member reflects on his experiences in the industry.
In this post, you'll learn how to find the right software platform for your compliance and surveillance staff to help you become and remain compliant with SMR requirements.
Given the events of the financial industry over the past 10 years, it's no wonder that both regulators and financial organisations are trying to do their best to uncover, prevent and stop misconduct and fraud from taking place.
When it comes to institutions, they have invested money and effort in Regtech software to meet increased regulatory demand and oversight. For their part, governments have created new entities and regulators have issued a heap of new legal measures to address the issues.
Buy-side trading has become increasingly sophisticated over recent years. More complex asset classes are being included in portfolios which has called for Asset Managers, Wealth Managers as well as smaller hedge funds and broker firms to consider implementing automated surveillance tools and technology.
Arguably the greatest challenge for market advisors is the number of global regulations and the increasing pressure from regulators to ensure their investment and trading divisions follow the rules. The UK’s Financial Conduct Authority (FCA) announced their intentions to put buy side firms under the spotlight in 2019 and ramp up enforcement around market abuse and insider dealing.
Many banks feel that voice surveillance is still something reserved for the movies. Having been in production in trading rooms for 10 years now, we can safely say that it is a reality for those who have invested in it. In fact, we would go further to say that effective voice surveillance is not only possible, it's also accurate and in Fonetic's case, it's the most accurate on the market today.
Do you want to know how we did it?
Ten years ago, a global bank asked Fonetic to extend their capabilities in voice analysis to the trading floor. Their aim was to automatically analyse every voice communication to check for misconduct or market abuse. They succeeded and 6 months later left behind voice sampling. We spent the following 9 years and 6 months running into stumbling blocks and overcoming them, developing a solution which is without doubt the most accurate voice surveillance software around for trading floor environments.
This article will show you why you should do the same with your voice surveillance.
Last week we were excited to sponsor the second edition of the 1LoD Summit in London, the only event for risk & control professionals in the financial services sector.
The event has seen outstanding growth since the first edition of 1LoD in 2017, making this year’s London summit more than a well-attended event: covering topics which united all three lines of defence, 1LoD exceeded all expectations in the quality of attendees and the presentations shared with all of us.
Last week we attended the Risk & Compliance Leaders Summit 2018 in Berlin, where we met some amazing people and listened to fantastic speakers. It was very interesting to be a part of the audience polls and to be able to conclude that as vendors we are aligned with the demand for communications monitoring and surveillance, be it ecomms or voice comms.
Not long ago, I shared my thoughts on the #MeToo movement in Finance News. Since then, we have seen the hashtag campaign extend to Bollywood in India and tech giants such as Google, exposing a culture that spread far beyond what one could have imagined. Below you can read the full article or see the press release here.
Fonetic was at the American Banker’s RegTech event in New York recently where we had the pleasure to listen to regulation and compliance practitioners talking about their experiences streamlining and automating compliance chores and turning that investment into a competitive advantage in the process.
In linguistics, combining words from different languages within the same phrase is called language switching or code switching. When talking about language switching outside of academia, many may think of James Bond movies, double-agents and spies; in other words, risky behaviour. That’s not necessarily off the mark when it comes to trading and the financial industry. For instance, if a trader or another employee at a financial institution uses more than one language in a sentence or a conversation, it may show an intent for committing fraud – something that regulators have been trying to watch out for lately. Here’s a look at the recent past to figure out some of the reasons for this monitoring.
Artificial intelligence (AI) has come a long way since the 1950s when scientists first started exploring problem solving using computers. From the early beginnings of simple neural networks to the growth of Machine Learning, AI technology has touched nearly every industry, the Ffnancial markets are no exception.
Breakthroughs in deep learning and self-teaching algorithms are driving the AI boom we’ve seen in recent years and this has single-handedly revolutionised the financial technology (fintech) and regulatory technology (regtech) markets. Although it's important to embrace technological change, we need to understand how it works and how to use it properly.
First, let's take a step back. According to Forbes magazine, there are many definitions of AI and different industry leaders focus their research in various ways. The English Oxford Living Dictionary describes artificial intelligence as “the theory and development of computer systems able to perform tasks normally requiring human intelligence, such as visual perception, speech recognition, decision-making, and translation between languages.”
Artificial intelligence is essentially the science of training machines to perform human tasks. It allows machines to carry out repetitive high-volume tasks without getting tired. This is incredibly powerful both for optimizing workloads and reducing human error in monotonous tasks. However, the human touch is still essential to ensure its success. Manual inputs both before to set up the system, ask the right questions and after, to analyse the results, to ensure absolute precision.
Nowadays, we put a lot of faith in technology. Is it all good news? We need to understand how far it's come but also its limitations and how to manage them using a variety of methods and techniques.
CA Data Protection, formerly known as CA DataMinder and Orchestria, have announced that their e-communications surveillance platform is coming to its end-of-life in June 2019. So, what does this mean for the Tier 1, Tier 2 and other financial institutions that depend on their solution?
Financial institutions are concerned about their data, and now even more since the presence of compliance and surveillance platforms which monitor all voice and e-communications, proactively, are now a regulatory obligation in directives such as MiFID II. Now there´s no excuses.
In this guide, you´ll find 7 reasons why migrating to a Fonetic surveillance solution is the safest and most convenient option:
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:
People like to talk. It´s part of our nature and is proven to generate a closer relationship with the person you are communicating with. In the UK alone, the total amount of voice calls, over fixed or mobile, amounted to over 200 billion minutes, according to a study by Statista.
When it comes to closing deals on a trading floor, voice calls are still an integral part of communications and one of the traders´ favourite channels, which makes it the most vulnerable too. However, only 20% of banks monitor their voice communications. As of January 3rd, 2018, the new MiFID II regulations requires companies to proactively monitor all communications related to a financial product, including voice, in order to prevent fraud from happening.
Voice surveillance is the most difficult channel to monitor due to various issues. This makes it the starting point to achieveing a more holistic approach. Similar to how this leading APAC bank achieved to mitigate risk through Holistic Surveillance, after conquering the voice data, it´s a lot easier to add in other communication channels.
Here are 4 factors you must consider when monitoring your voice channels: