“I love the system. Data collection is infinitely easier and when we are done we can analyze the data in reports. I cannot imagine going back to our paper-based process.”
CCO - 1,200 Person Broker Dealer
“We used to spend hundreds of hours downloading and printing employee statements. Compliance11’s employee trading product has saved us an incredible amount of time. Employees have embraced the instant acknowledgement that their trade has been approved.”
CCO - 40 Person Investment Advisor
Personal Trading
Supervising employee trading activity is critical to adhering to regulatory requirements and ensuring operational integrity. Paper or outdated personal trading systems can leave Compliance with a massive amount of work. Compliance11’s Personal Trading module streamlines employee trading surveillance with leading edge technology, allowing you to manage risk, not paper.
Disclosure
Employees can disclose their personal accounts, certify holdings and certify transactions through an easy-to-use web interface.
Electronic Brokerage Feeds
Electronic brokerage feeds eliminate the need to manually process paper confirmations and paper statements. Compliance11 partners with SS&C Technologies and ByAllAccounts, leading financial data aggregators, to provide access to information from thousands of brokerages.
Pre-Clearance
Through a confidential and secure login, employees can pre-clear trade requests. Trade requests can be automatically pre-cleared according to business rules that you configure. If the trade request does not comply with your business rules, it can be automatically denied or routed for manual review.
Transaction Review
The day after employee trades are executed, electronic transactions can be automatically matched to pre-clearance requests. The electronic transactions can be once again reviewed against the business rules to catch conditions that did not exist at the time of pre-clearance. When business rules are broken, exceptions are created and routed to the appropriate person for handling.
Business Rules
Business rules can be defined for specific employees or groups of employees. The business rules engine supports de minimis, blackout periods, restricted lists, holding periods, excessive trading, front running, insider trading and many more rules.
Reporting
Reports are available for additional analysis. Reports include: Holdings, Exceptions, Frequently Traded Securities, Restricted List and more. All reports can be customized and exported to Excel and PDF formats.
FAQ
How does an electronic pre-clearance work?
An employee logs into the system and completes a short form. If you use auto approval and no business rules are broken, the employee receives immediate notification that the trade was approved. If you use manual approval or business rules are broken, the approver receives email notification of the trade request. Upon approval or denial, the employee receives email notification.
Does your system have a security master?
Yes.
Do I have to pay extra for the security master?
No.
What exchanges does your security master support?
120 stock exchanges in 90 countries.
What if I do not require trade pre-clearance?
You can still use the system to automatically review brokerage statements. Checking statements against restricted lists, client trades, holding periods, etc. takes seconds instead of hours.
How does automated brokerage statement review work?
When brokerage statements arrive via electronic brokerage feed or are manually entered, the system checks them against customer configured business rules. For each rule that is broken, a personal trading exception is created and assigned to Compliance. Compliance investigates the exception, resolves it and marks it closed. A complete audit trail is maintained for auditors.
Can I customize my business rules?
Yes. You configure which business rules you want to check. If you have a business rule that Compliance11 does not support yet, Compliance11 works with you to add the business rule to the system for all customers to use at no charge to you.
Can different employees have different business rules?
Yes. You can define as many groups of employees as you like. Each group can have its own business rules.
Can I have multiple restricted lists?
Yes. You can define as many groups of employees as you like. Each group can have its own restricted list.
What do I have to do to setup an electronic brokerage feed?
You complete paperwork authorizing the feed. 1-2 weeks later data starts showing up in the system. No involvement from your IT department is necessary. (Certain brokerages are more involved and require more time.)
Which brokerage firms do you support?
Data feeds can be provided for any brokerage that can deliver data electronically.
What if I cannot limit which brokerages my employees trade at?
Firms that cannot limit the brokerages their employees trade at typically get brokerage feeds for the large brokerages. For other brokerages, they either (1) have employees enter their transactions as part of their monthly transaction confirmation, or (2) have an admin enter the transactions from the paper brokerage statement. Entering the statement by hand is typically faster than doing a manual statement review.
How many electronic brokerage feeds to customers typically have?
1-5. There are diminishing returns at some point.
Can I upload client transactions from my order management system?
Yes. Once uploaded, the transactions can be checked during trade pre-clearance and can be used to create the Front Running Report.
Can I automate my quarterly transactions and holdings submission?
Yes. The system supports periodic employee entry of transaction and holdings data. However, most firms that get electronic brokerage feeds do not use this feature.