TradeWatch Compliance Risk

Do you wish you had RAG status heat map on all
regulatory compliance rules related to trading?

With EagleAi your wish may be granted!

The advanced AI engine powering EagleAi Compliance Risk

EagleAi’s Tradewatch enterprise scale AI platform and its Advanced Compliance management modules reduce compliance risks faced by the Enterprise banks and Financial services industry.

Real time compliance monitoring can help firms correct issues as soon as it happens

Every year, many firms are getting fined by global financial regulators for millions of dollars for various levels of non-compliance. Trading Firms can have a peace of mind with EagleAi’s Advanced Compliance Risk module as it covers quite an array of global compliance rules. 

Regulators’ surveillance programs might detect these violations before the firms themselves detect them. Having compliance checks closer to real-time could help prevent large violations that will draw increased scrutiny and audit on the firm by the regulators.

EagleAi’s methodology is not to apply compliance checks themselves but to check if the trade flows related to compliance rules such as percentage of “Short Sell” orders, percentage of inter-market sweep orders etc., follow a known pattern.

EagleAi Advanced Compliance Risk Management system helps Trading Firms to detect non-Compliance violations. Serious problems can be detected which was lurking for several years not known to existing traditional compliance checking tools.

EagleAi support monitoring for most equity trading compliance rules out of the box. Rules such as US Equities SEC & FINRA Trading  Rule 611, 15c3-5, 200, 203, 47A are some of the many compliance rules supported by EagleAi.

The advanced Artificial Intelligence engine powering EagleAi Compliance Risk modules has been built to cover many trading related compliance rules globally.

By detecting a large deviation in these key drivers, EagleAi is able to alert potential violations of compliance rules as soon as it happens along with details such as the name of the trading system in the firm where such violation is suspected thus giving an opportunity for the trading systems to be corrected before it is allowed to continue trading with compliance violations.

Real time compliance monitoring helps in resolving issues as soon as it is discovered

EagleAi™ Compliance Risk algorithm includes the following rules :

US Equity Market:  

  • Rule 611 -RegNMS
  • Rule 15c3-5 Market Access Rules
  • Rule 200 -Short Sell Check
  • Rule 203 -Locate Check
  • Rule 47A -Order Capacity Check

London Stock Exchange:  

  • Rule 2102 -Order Capacity Rule
  • Rule 3012 -Trade Reporting Rule
  • Rule 3080 -Broker-Dealer Capacity Rule

EagleAi Compliance Rule module is pre-built with most of the trading related compliance rules in equities and futures trading.

EagleAi Compliance Risk module is easily extendable to support any missing compliance checks or checks for asset classes yet to be supported.

Benefits of EagleAI Compliance Risk

For Compliance Managers and Internal Auditors: EagleAi™ Compliance risk alerts on critical violations automatically and provides insights that goes beyond traditional compliance measures. Alerts can be custom configured at various levels.

For Compliance Managers: EagleAi™ TradeWatch ensures that they are aware of any compliance violations that is triggered due to trading activity from all the systems.