Post-Trade Monitoring On Firms’ Radar

Terry Flanagan

NYSE Technologies launches Trade Exception Radar.

Regulations that have been or are in the process of being adopted, such as Large Trader Reporting, are upping demand for post-trade monitoring tools.

“The ongoing changes to the regulatory environment create tremendous pressure on market participants,” Karthik Shanmugham, managing director at NYSE Technologies, told Markets Media.

“Our clients want to reduce operational costs while focusing on their core business.”

That’s prompted NYSE Technologies to launch Trade Exception Radar, a real-time supervisory tool for enhancing trading compliance and risk management.

The product, hosted in the NYSE Technologies U.S. Liquidity Center in Mahwah, is designed to offer fully automated surveillance and compliance capabilities across asset classes.

“Products such as Trade Exception Radar are focusing on these areas, while also giving affording customers the ability to quickly react when regulations change,” said Shanmugham.

Under the SEC’s large trader reporting rule, large traders, defined as anyone whose trades equal or exceed two million shares or 20 million during any calendar day, will be required to identify themselves to the SEC and their broker-dealers will be required to monitor their transactions under a large trader reporting regime.

Trade Exception Radar is currently offered in the United States, and will be offered to European clients later in 2012.

Trade Exception Radar is a part of NYSE Technologies’ suite of trade monitoring solutions, which also includes the Risk Management Gateway (RMG), a high throughput, low-latency routing and risk management engine with detailed risk checks and reporting capabilities.

“It’s a fully hosted solution by NYSE Technologies that sits within our Transactions Solutions suite,” said Shanmugham. “The solution captures our clients’ trade data in one interface to streamline the compliance work flow.”

As Trade Exception Radar is an OMS agnostic application, the service allows our customers to consolidate their trade flow to reduce reporting silos, said Shanmugham. In addition, the system allows clients to create bespoke exception alerts and reports.

“These features are unique, as our clients gain the strategic flexibility to tailor a surveillance solution to the firm’s needs,” he said.

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