Best Execution Forensic review for an EMEA Asset Manager

  • Reduce the high number of false positives

  • Review the current reporting processes and suggest improvements


CLIENT CHALLENGES
  • EMEA based asset manager, with retail and institutional clients was experiencing high number of false positives and was looking to improve data quality and reducing false alerts
  • Required support to re-engineer their current process in order to reduce false positives
OUR APPROACH
  • Acuity forensic compliance experts created a sampling methodology for all trades executed
  • Used data analytics tool Alteryx to create rules to determine if a trade would be in-competition or a non-competition trade e.g.
  • Types of outliers reviewed :
    • ­ Executed with only 1 competing broker
    • ­ Did not execute with the best price, spread, or yield
  • The team also created an independent analysis approach e.g.:
    • ­ Review the RFP trade audit trail to understand why the trade was not executed with another competing broker
  • The team identified:
    • ­Instances where traders did not execute with the best price
    • ­ Gaps in internal thresholds which were giving multiple false positives
Benefits
  • Proactive testing on an emerging risk as defined by the regulator
  • Fulfilled the criteria for internal risk vetting
  • Improved process efficiency by enhancing the reviewing and reporting processes
  • Ascertained, recommended, and implemented critical subsequent steps
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What we have done

Forensic Compliance Support
What we are proud of

30+

client analysts supported

Editing, formatting & design, and translation

Emerging Regulatory Risk Adherence for a Global Financial Services Firm
What we are proud of

30+

client analysts supported

Editing, formatting & design, and translation