Broker Dealer Platform

Empowering Broker-Dealers with Scalable and Secure Solutions

Broker-dealers are entities that buy and sell securities and distribute other investment products, serving a dual function as their name suggests. As dealers, they execute transactions for the brokerage firm's own account, while as brokers, they facilitate transactions by buying and selling securities on behalf of their clients. In these dual roles, broker-dealers perform essential functions in the financial markets, they help maintain the liquidity of securities by ensuring their availability in the open market, and they actively trade in their own accounts to support market stability for their clients. Because of their critical role, broker-dealers are well-compensated, earning fees on one or both sides of a securities transaction.

Broker-Dealer

Fintech

CTO-as-a-Service

Investments

Expertise

Fintech software, Financial Services

Deliverables

Strategy, Design, Development, Maintenance

Tech Stack

Google Cloud and related services: Google SQL, Kubernetes, Google build, and Cloud functions, python, golang, Vuejs, Stylus, Postgres, playwright

Expertise

Fintech software, Financial Services

Deliverables

Strategy, Design, Development, Maintenance

Tech Stack

Google Cloud and related services: Google SQL, Kubernetes, Google build, and Cloud functions, python, golang, Vuejs, Stylus, Postgres, playwright

Challenges For Innovators

Operating as a broker-dealer requires meeting stringent regulatory, technical, and operational challenges. From ensuring the robustness of infrastructure and compliance with complex regulations to managing cybersecurity, data retention, and trade surveillance, broker-dealers must adopt advanced technology and risk management practices. The costs and complexities of meeting these requirements are substantial, and firms must continuously invest in improving their systems to maintain compliance and security while serving their clients effectively.

  • Infrastructure requirements
  • Compliance Requirements
  • Cybersecurity Requirements
  • Reporting Recordkeeping Systems
  • Data protection Requirements
  • Data Retention and Management
  • Trade Surveillance and Monitoring
  • Other requirements

Embracing Webdevelop PRO for Success

80%

Reduction in customer acquisition costs

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“The development work delivered by Webdevelop PRO completely exceeded the client’s expectations for the project and enabled them to successfully launch and maintain their platform. Their team is dedicated to the long-term quality of what they create and put effort into meeting all deadlines.”

Ken Staut, Head of Corporate Development at Yieldstreet

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 handle-million-requests-second-during-rush-hours 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

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.
Unique Proposition

How We Can Help

Your All-in-One Broker Dealer Platform Solution

Webdevelop Pro offers a robust, compliant, and scalable software solution specifically designed to address the unique challenges of broker-dealer operations. Our platform ensures seamless performance while safeguarding critical infrastructure and maintaining regulatory compliance.

Webdevelop Pro is the complete solution for managing your broker-dealer platform. Contact us to schedule a demo and learn how we can optimize your broker-dealer operations.

Schedule Demo
Infrastructure Requirements
Built to support high-volume transactions and complex broker-dealer operations with a scalable, reliable infrastructure
Regulatory Compliance
Automate compliance with SEC and FINRA regulations, ensuring adherence to all relevant legal requirements
Reporting and Recordkeeping Systems
Manage detailed records and generate comprehensive reports in line with regulatory standards, ensuring accuracy and timely submission
Data Protection Requirements
Secure sensitive data through advanced encryption and strict access control, meeting stringent data protection laws
Data Retention and Management
Efficiently store and manage critical data, compliant with long-term retention rules, such as SEC Rule 17a-4
Cyber Risks Mitigation
Protect against cyber threats with multi-layered security protocols, safeguarding your platform and users
Trade Surveillance and Monitoring
Monitor trades in real-time for suspicious activities, ensuring compliance and protecting market integrity
Sensitive Data Protection
Ensure the highest level of protection for client and transactional data, reducing the risk of data breaches
Gopher

Project Timeline

Initial research and development

Duration: 2 weeks

Conducting thorough research on existing solutions and compiling a list of functionalities in accordance with the client's specific requirements.

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