Jordan & Jordan - Trade Reporting Process Assessment

Trade Reporting Process Assessment

The current climate of regulation and increased scrutiny of trading practices and operational procedures has significantly impacted transaction reporting, with expanded requirements for asset types, trade details and timeliness.

Regulatory reporting in the US is directed by:

the Financial Industry Regulatory Authority ("FINRA") using the Order Audit Trail System ("OATS") for all NMS securities;
the Automated Confirmation Transaction Service ("ACT") for all exchange-listed trades;
the Trade Reporting and Compliance Engine ("TRACE") for corporates, agency debt, and asset backed securities; and,
the Municipal Securities Rule Making Board ("MSRB") using the Real Time Reporting System ("RTRS") for municipal bonds.

Additionally, Large Trader Reporting requirements have become effective with a compliance date of April 30, 2012. And, the more comprehensive Consolidated Audit Trail ("CAT") system is now being defined by the regulators.

For most firms, the incremental adjustments to compliance and reporting systems made over the years to accommodate new regulatory demands, coupled internally with the addition of new business lines in various regions, have resulted in compliance reporting systems that are piecemeal, disjointed, and in some areas, NON-COMPLIANT.

Now is the time for a review of operational and compliance practices related to regulatory trade reporting.

Jordan & Jordan has provided a number of clients with a comprehensive review of the processes and technologies that support their regulatory reporting requirements. We can also customize an ongoing review program that incorporates industry best practices for continued compliance.

Contact Michael O’Conor for details.
212-652-4483
michael.oconor@jandj.com