In today’s rapidly evolving financial landscape, trade surveillance has become a critical focus for regulators, especially for Global Systemically Important Banks (G-SIBs). Historically, the emphasis was on monitoring executed trades, which are relatively straightforward due to built-in record-keeping controls on approved trading platforms. However, the regulatory lens has shifted to include unexecuted orders, such as Requests for Quotes (RFQs) and intentions of interest, as well as ensuring the completeness of trading venue inventories and pre-trade client interactions.
To tackle these challenges, financial institutions need robust control frameworks. Key controls include governance of data lineage, reconciliation and system interface controls, and management information and Key Risk Indicators (KRIs). These measures are essential for maintaining comprehensive trade surveillance systems that meet regulatory expectations.
At Davies, we understand the complexities involved and offer deep insights into how G-SIBs and other banks are enhancing their control systems. Our expertise spans across major financial institutions, providing tailored support to assess and improve control environments. With a global presence and experienced practitioners, we ensure compliance and effective risk management.
For a deeper dive into these insights, download the comprehensive whitepaper by Assurance expert Pritesh Patel. It offers in-depth knowledge on how banks are significantly enhancing their control systems. If you have any questions or need further assistance, feel free to get in touch.
