Broker Dealer Platform

Challenges For Innovators

Infrastructure requirements

• Scalability and Reliability: Broker-dealers must ensure their systems can handle high volumes of transactions, especially during peak trading periods, without performance degradation or failure. While this can be a complex challenge, we possess the expertise and proven strategies to effectively address these scalability demands.
• Data Integrity: Systems must maintain the integrity and accuracy of transaction data, ensuring that all trades are processed correctly and in compliance with regulatory requirements. We are using trusted partners and proven over the years flow.
• Redundancy and Failover: Firms must implement redundancy and failover mechanisms to ensure business continuity in the event of system failures. This includes backup systems, data replication, and disaster recovery plans. We are using DevOps sophisticated technics to provide monitoring and backups on scale.

Cybersecurity Requirements

• Our platform is fully compliant with NIST SP 800-53, adhering to comprehensive security and privacy controls to ensure the highest standards of risk management and regulatory compliance
• Increased Exposure to Cyber Attacks: Any software might be vulnerable to cyber threats. We continuously adapt to emerging risks and enhance our security pipelines to safeguard your offerings against cyberattacks.
• Vulnerability to Phishing and Fraud: Cybercriminals frequently target issuers and investors with sophisticated phishing schemes, fraudulent wire transfers, and other cyberattacks. Our platform is continuously updated to monitor emerging phishing techniques, ensuring your transactions and data remain secure.
• Compliance with Cybersecurity Regulations: Platform must also meet stringent cybersecurity regulations, security is a core feature that seamlessly integrated into our offering service and filer RESTFULL API, ensuring full compliance and data security.

Reporting and Recordkeeping Systems

• Order Audit Trail System (OATS): Broker-dealers must have systems in place to comply with OATS reporting requirements, which involve the collection, transmission, and retention of detailed order information to FINRA.
• Electronic Blue Sheets (EBS): Firms must be capable of generating and submitting EBS data to the SEC upon request, which details trade data for specific securities.
• Automated Submission of Data: Broker-dealers must have systems that can automatically generate and submit regulatory reports, such as FOCUS (Financial and Operational Combined Uniform Single) reports, TRACE (Trade Reporting and Compliance Engine) submissions, and other required filings.
• Our administration panel, integrated: with filer service and notification service, empowers operations teams to respond swiftly, ensuring consistent and compliant operation flow.

Data protection Requirements

• Client Data Privacy: Broker-dealers collect sensitive financial and personal information must comply with privacy regulations to protect client data and avoid regulatory penalties. We are using proven over the years dataflow.
• Data Encryption: Sensitive data must be encrypted both in transit and at rest to ensure that it is protected from unauthorized access. We constantly upgrading our system and proactively monitoring OWASP reports.
• Enhanced data protection process: Our platform adheres to the stringent security and identity verification standards outlined in NIST 800-63B, ensuring compliance with industry-leading protocols for secure digital interactions.

Data Retention and Management

• SEC Rule 17a-4 Compliance: Broker-dealers are required to retain certain records for up to six years under SEC Rule 17a-4. These records include customer communications, order records, and financial statements, which must be stored in a non-erasable, non-rewritable format (WORM).
• Cost of Storage and Management: Maintaining vast amounts of data securely and ensuring its availability for regulatory audits is expensive. Implementing a system that automates data retention, while meeting regulatory requirements, is technically challenging and requires continuous monitoring.
• Archiving Communications: Broker-dealers must archive all communications with customers, including emails, chat messages, and social media interactions, which can be a massive undertaking given the volume and need for ongoing access.
• Our system leverages: cost-effective data storage solutions to securely retain records required under SEC Rule 17a-4, including customer communications, order records, and financial statements. These records are stored in regulatory-compliance format and can be easily retrieved whenever needed.

Trade Surveillance and Monitoring:

• Real-Time Monitoring Systems: Broker-dealers are required to implement automated systems to monitor trading activities for signs of market manipulation, insider trading, and other violations of securities laws. Our monitoring and acceleration tools a real-time alerts for any suspicious activities.
• Best Execution Practices: Broker-dealers are required to seek the best execution for their clients' orders. Monitoring and documenting execution quality across multiple markets and comparing performance are essential for demonstrating compliance.
• Suspicious Activity Detection: Implementing tools to detect suspicious activities, such as unusually large or frequent trades that could indicate fraud or money laundering, is critical but requires advanced technology and expertise.

Other Requirements:

• Business Continuity Planning (BCP): Broker-dealers must have a comprehensive business continuity plan in place to ensure continued operations during disruptions. By using proper DevOps solutions one can build resilient platform.
• Client Communication and Disclosures: Broker-dealers must provide clear, accurate, and timely disclosures to their clients regarding fees, conflicts of interest, and the nature of investments. Maintaining transparency and managing ongoing communication with clients is both a regulatory and operational challenge. Our administration panel, integrated with email service, empowers operations teams to respond swiftly to unforeseen events, ensuring consistent and compliant client engagement.
• Capital and Liquidity Requirements: Broker-dealers must maintain certain levels of capital and liquidity at all times, depending on their business model. Monitoring and managing capital levels in real time to avoid falling below regulatory thresholds is essential to avoid penalties or regulatory action.