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Case Study
Market Maker Improves Compliance & Risk Management
Continuous OTR risk assessment and predictive alerting from Corvil simplifies intraday compliance
Challenge
Rising Cost and Complexity of Compliance with Emerging Regulation
- Daily review of reports from over a dozen execution venues covering thousands of instruments
- Reactive compliance checking when each venue calibrated its own OTR limits and fines per instrument
- Multiple automated trading strategies that combine into a firm-wide OTR for each venue and product
- Creation of a consistent, proactive oversight without dedicating significant resources to develop predictive analytics and risk assessment tools
Solution
Continuous OTR Risk Assessment and Predictive Alerting
- Streamlined firm-wide OTR measurements and calculations by dimensions of venue, market, instrument, and participant type
- Machine learning-powered analysis of per-instrument OTR behaviors and predictive forecasting and alerting of end-of-day MiFID II violations
- Streamlined collaboration between compliance, business, and technology teams to identify strategy or performance changes to balance management of intraday compliance risk and execution outcomes
- Independent creation of venues' end-of-day per market, per instrument reporting, simplifying validation and reconciliation efforts
- Complete, forensic audit-trail record of order lifecycle messages and analysis to simplify inquiry response
- Flexible, modern analytics platform with machine learning for diverse trading business intelligence use cases such as order flow analytics, operations, and quantitative analysis
