Rule 15c3-5 Risk Management Controls and Surveillance Requirements for Market AccessRule 15c3-5 requires brokers or dealers with market access to establish, document, and maintain a system of risk management controls and supervisory procedures that are reasonably designed to:
- Systematically limit the financial exposure of the broker or dealer that could arise as a result of market access, and
- Ensure compliance with all regulatory requirements that are applicable in connection with market access.
Subject Matter Expertise (SME) for Compliance and Assessment Services
- Performing a gap analysis will identify those business lines and operational areas that should re-evaluate their current approach to 15c3-5.
- Establishing an annual review process will test and measure the effectiveness of your risk control policies and supervisory procedures as they are applied to actual business activity.
- Assessing regulatory risk management controls and supervisory procedures will ensure they are properly aimed at systemically limiting financial exposure caused by market access.
- Performing due diligence (where broker/dealer responsibility has been allocated) to ensure third party systems meet 15c3-5 requirements.
- Validating that control procedures are "under direct and exclusive control" of the responsible broker/dealer.
- Evaluating market access points that a firm provides for both internal and external order entry.
- Selecting appropriate technology solutions for trade monitoring and risk management.
- Providing project management services for system and process enhancements that leverage Jordan & Jordanís domain expertise and experience to ensure your firm adequately meets compliance requirements.
- Educating company employees and supervisors about the rules to ensure policies and procedures are institutionalized.
Why Jordan & Jordan?
Jordan & Jordanís 15c3-5 expertise leverages knowledge gained from our industry leadership and involvement working with regulators and broker dealers to shape practicable requirements, and from our experience assisting broker dealers with the various implementations required by the Market Access Rule.
Jordan & Jordan is experienced in managing large-scale projects, where industry timelines are critical and your internal resources must be used efficiently. Our familiarity with the securities trading process extends from decision support and order entry to back office processing and asset servicing, providing a solid foundation for process review, compliance analysis and issue resolution.
Continually keeping pace with market practice and regulatory change, we provide business, regulatory and technical solutions to meet the challenges faced by our customers in an increasingly competitive market.
For additional information on Jordan & Jordan's 15c3-5 Compliance Solutions, contact Michael O'Conor at 212-655-2953.