Can your firm react quickly to sudden modifications in industry conditions?
A great deal has been mentioned about capability of an enterprise to quickly react to ever-changing market conditions. The financial meltdown of 2008-2009 as well as the ensuing crisis of self-confidence, resulted in a typically sedate government body, the Securities and Exchange Commission (SEC), reacting to criticism by mandating quite a few compliance modifications that were sudden, forceful, and as a result very impactful on 1 sector in the economy – investment banks, brokers and dealers. This effect was mainly apparent when SEC banned brief promoting of many economic stocks
Let’s critique a common course of action to respond to such regulation. The ban itself doesn’t list the securities which are included inside the mandate, but instead it indicates the Standard Industrial Classification SIC codes. So a choice of the stock symbols and flagging of those symbols inside the trading system will likely be needed by the complying firm. Then there’s an effective period. But that is not the finish of it – only the beginning of a approach that may take valuable time and impede productivity. You will discover orders left in the system that must be cancelled considering the fact that they may be no longer allowed. Prospects must be notified, documents filed, new processes discovered and so forth. Most of these processes call for significant intervention into standard organization processes which is time consuming and expensive.
An option strategy would be to utilize policy driven solutions, enterprise integration together with the existing trading technique to enact new business enterprise rules, communicate with shoppers about these alterations, and monitor and handle the impact of those changes on all involved stakeholders. This futuristic scenario was the basis from the requirement with the policy management application that was completed for an investment bank in anticipation of a mandate equivalent for the one in the SEC.
We had no time to waste and utilized OASIS XACML standards to define and manage policies. An intuitive user interface permitted investment specialists to rapidly sort by way of the myriad of stock exchanges, sectors, and tickers to define the subjects of every single rule. The period of effectiveness for just about every rule is as uncomplicated as a click in the calendar – no complex terminology, no convoluted source code, no massive technologies teams. All guidelines were made and tested by subject matter authorities inside a few days of enactment. Time was superior spent on validation of accuracy as opposed to manual coding of anything that may be gone inside a handful of months and has no small business worth. The cost savings have gone way beyond the resources, due to the fact anything is clearly documented, verifiable and compliant with government requirements.
A showcase of this creative and effective option can now be viewed at our web web page and is driven by the major safety requirements, compliance processes, and integration capabilities.