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Welcome to The Surveyor Monitor, our monthly newsletter highlighting the latest updates and industry perspectives from Trillium Surveyor.
Over the past few weeks, we’ve had many conversations about the SEC’s expanded dealer definition: what it means, who it covers, and what it will take to comply. While the details remain vague, it seems likely that many proprietary trading firms and other market participants will be forced to register with FINRA for the first time.
There’s a lot that goes into that process – and you can’t afford to overlook any aspect. Trade surveillance is one example of a control that FINRA closely scrutinizes, but that may be off the radar for some firms that fall under the expanded definition, simply because they haven’t been required to have it in the past. Handling this important function through a basic system or an ad-hoc process could undermine your application.
We bring a firsthand perspective on what it takes to quickly implement a robust trade surveillance program to guard against regulatory enforcement actions. Nearly 15 years ago, proprietary trading firm Trillium Trading was fined for market manipulation and related supervisory failures, sparking a serious reexamination of the firm’s compliance program. They found that no commercially available trade surveillance platform was equipped to meet their requirements – so they built their own. Eventually, that product spun out into Trillium Surveyor.
The results speak for themselves. Since the launch of Surveyor, Trillium Trading – effectively our first client – has never been fined. Many of our other users are heads of compliance who rely on Surveyor to serve as an analyst, task manager, and operations staffer all in one.
How do we do it? It boils down to a few key success factors:
- Speed and Flexibility – API-driven, cloud-based architecture enables rapid implementation and easy configuration
- Modern Workflows – Intuitive visualizations, smart alerts, and straightforward reporting tools enhance the user experience and streamline key processes
- Powerful Surveillance – Our platform is built for depth, accuracy, sophisticated detection, and extensive coverage
Want to learn more? Read our full article on the topic, and don’t hesitate to reach out to us. We look forward to hearing from you!
– Lisa Balter Saacks, President, Trillium Surveyor
Product Spotlight: Trade Concentration Parameters
Users can now more precisely adjust thresholds for detecting trade concentration risk, reducing output by as much as 40% for a more streamlined surveillance workflow.
Where We’ve Been, Where We’re Going
Last month, our team flew south to St. Pete Beach for the STA Florida 42nd Annual Conference.
It was a great week of hearing perspectives from industry leaders and a wide range of market participants, particularly in light of the SEC’s new dealer registration mandate. One particularly insightful session: the “Electronic Trading, Surveillance, and Supervision: Regulatory Guidance and Updates Across Asset Classes” panel. It was valuable to listen to senior leaders at FIF, Raymond James, TradeStation, and Trumid discuss some of their top concerns and priorities, from the intensifying regulatory environment to achieving multi-asset compliance. We applaud STA Florida for highlighting these important topics and look forward to adding our voice to the discussion as firms work toward achieving a culture of compliance.
Spilling the Tea on Trade Surveillance
Thank you to all who attended our “Spilling the Tea on Trade Surveillance” panel discussion last week! In honor of International Women’s Day, we teamed up with Women in RegTech New York to highlight perspectives from senior RegTech leaders and showcase the latest trends in detecting market abuse.
The friendly, intimate environment facilitated not just a compelling discussion, but great opportunities to exchange new ideas, network, and build relationships. Forums like these are crucial as we collectively work toward greater representation and advancement opportunities for women in RegTech and FinTech. We’re already looking forward to co-hosting another one later this year!
Looking Ahead
We’ll be attending several events over the next few months. If you’ll be onsite or in town, be sure to say hello! Email Rob Cope to set up a meeting.
Crowdsource Corner
We want to hear from you! We know your firm is constantly innovating in search of an edge – so it only makes sense that we’re observing a steady increase in firms actively looking to enter new markets. By letting us know what’s next on your roadmap, you can inform our product enhancements, influence conference topics we speak to on the circuit, and help us prepare for our next check-in with you.
With that, we ask: what new asset class or global market are you looking to move into next?
