The capital markets have continued to see increasing regulations. As part of the globalization of markets, today investors can buy stocks in any stock exchange globally regardless of where they are. The aim of regulations is to increase fairness, transparency, and integrity in stock market trading. The regulations have also helped to minimize the exposure of stock markets to stock market fraud including insider trading. Many brokerage firms have struggled to meet the stringent regulatory obligations but there is hope after all. Leveraging on advanced trade monitoring technology has been a central pillar in compliance in fact; stock brokers with these systems have had better success in compliance compared to those that don’t or those that use outdated systems.
Why Is The Use Of Technology Important?
The use of technology in compliance monitoring requires a significant start up cost but even then, the value it adds is so huge. Even though these systems are not 100% effective, if they are complimented with an effective organizational structure that responds and resolves risks it can deliver outstanding success. Here are some of the benefits of using tech in compliance monitoring:
Even though the initial investment needed to develop, acquire or lease technology for compliance monitoring will be high. Once the system is in place you won’t have to spend a lot to keep it running. When you compare this with hiring a full compliance department working round the clock for your firm, you’ll see that there are good savings you can make with technology.
The way compliance technology is designed is aimed to achieve one thing – accuracy and consistency. The human error factor is not a problem with compliance monitoring technology. As a stock broker you are sure that if there are any suspicious transactions, it will be flagged. This makes the idea of full compliance easier and more cost effective. However, make sure you get a top compliance system from leading providers in Europe such as Trapets.
Tracking a Real Time Basis
Trading on the stock market is done on a real time basis so it makes sense to ensure that the compliance monitoring system is in place. Well, it does and in fact, once the system is integrated with your trading software it will be tracking and monitoring everything in the background on a real time basis. You will not miss a thing. The system will also generate real reports for you so that you can be in control of your trades. This is very important in reducing the likelihood of compliance violation in stock market trading.
The use of compliance tracking and surveillance is the way to go in stock market compliance. Feel free to visit Trapets and get more info about these systems.