Policy, Procedures and Controls - Armor Plating

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The Basle Committee has urged global financial institutions to guard against fraud and trader abuse as a significant component of operational risk. TRCI has conducted engagements which review the trading operation from the point of view of a rogue trader seeking to exploit weaknesses in existing controls, much the same way technology companies employ hackers to attempt to thwart their security measures.

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This review includes:

·         reviewing trading tapes to examine the conduct of trading staff

·         evaluating the Policies, Procedures and Controls that govern the operation

·         conducting an overview of the physical trading operation

·         assessing the methodology used to measure the pricing validity of transactions

·         providing specific recommendations as modifications or addenda to existing Policy,                                             Procedure and Control documentation.

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Technology

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Armed with experience as both developers and end-users of trading and risk-management software products, TRCI's principals can aid technology companies by reducing the cost and time associated with product development.  Our understanding of end-user needs can provide valuable insights into product development.

We have worked with confidential focus groups comprised of TRCI's consultants to review prototypes and provide valuable feedback to the development process. 

We can also conduct in-depth product reviews and competitive comparisons through the use of long-standing relationships throughout the trading/risk-management community. Results of such product reviews are presented in a clear, concise and objective manner.

Our consulting services can range from limited scope diagnostics, through investigation and analysis, to recommendations and implementation. TRCI always maintains the highest degree of confidentiality. 

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Cross-Asset Execution Review

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Executions across asset classes frequently mask poor executions for both client and proprietary trades alike.  In cases where clients suffer, failure to adequately monitor these trades can represent legal or regulatory risks.  The advent of MIFID has redrawn the regulatory landscape.

Asset managers face increased scrutiny surrounding their fiduciary responsibilities.

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