Audit and Compliance – Electronic Markets

In response to a historical incident that resulted in a financial loss for the bank, the client decided to take a proactive approach to a number of other historical incidents tracked down by Audit and Compliance.

The objective was to respond to Audit and Compliance with:

• A comprehensive risk assessment and a risk control framework & environment. These will prevent future financial losses for the bank occurring again; and
• A transparent, consistent, standardised and compliant procedure that is applied globally (LDN, NY, SING).

GreySpark was asked to deliver improved risk reporting processes and to reduce operational risk. These tasks will help the client proactively meet their MiFID II requirements.

A GreySpark Senior Consultant:

1. Gathered data from key stakeholders (Electronic Markets Client Solutions, Electronic Markets Sales, Audit, Compliance and Legal).

2. Reviewed existing controls and completed a gap analysis to meet the control framework expectations.

3. Analysed existing documentation and advisory to improve existing processes.

4. Completed workshops with key stakeholders.

5. Provided weekly updates to global heads.

GreySpark provided:

• A documentation hierarchy covering all aspects of the client onboarding requirements from KYC and Credit;
• A project plan (GANTT CHART);
• Process maps for various trade flows including Direct API flow, Multi Dealer Platforms / ECNs and Single Dealer Platform;
• Credit, FX and Rates system architecture review; and
• A Golden Source (SharePoint) library.

• The client gained a controlled framework across electronic markets globally.
• GreySpark delivered a standardised approach to approving new execution venues and new transactions (NACs: New Approval Committee, TACs: Transaction Approval Committee).
• Compliant procedures were validated by Front-office staff and Senior Business Officers (SBOs).
• GreySpark delivered a transparent operating model used globally (NY,LDN, SING).
• Centralised documentation was saved in a new Golden Source library for easy access.
• Transparency and ease of reference to all documentation and procedures for electronic markets were successfully implemented.