Financial institutions are increasingly concerned about the effectiveness of their trade surveillance and reporting controls. Many find it difficult to develop a formal ownership structure and governance processes for trade surveillance and as such, they operate their systems with minimal testing and management reporting. The drive to deliver speed to the business over the past few years has resulted in control and data gaps which are now threatening the ability to conduct thorough trade surveillance and reporting.

KPMG strongly believes that effective trade surveillance and reporting comes down to two main areas: data and controls.

Data – Having the right data, making it accessible and monitoring it in real-time are all critical to running an effective trade surveillance capability, as is ensuring that the ownership of data and associated work flows are clear and formalized.

Controls - organizations must develop a holistic, end-to-end view of their processes and controls to properly manage trade surveillance.

We work to help our clients look under the hood and conduct a thorough health assessment of their trade surveillance and reporting capabilities before errors occur or are identified by regulators.

Trading Risk Solutions Group

Our group provides specialized trading risk global support to major investment banks, energy trading firms and investment and asset managers. We have a specialist e-trading risk and controls division, where we help ensure ‘new world’ fraud and misconduct threats are properly understood and managed. We address trading risks primarily related to:

• Unauthorized trading
• Market abuse and rate manipulation
• Front office conduct and cultural issues
• Regulatory interpretation and response
• Operational risk
• Electronic - program trading risk and controls

Many of our clients find themselves under more pressure than ever before to mitigate trading/trader risks. We work closely with them to address the big trading risk issues facing today’s trading firms, providing innovative solutions to tackle fraud, misconduct, manipulation and other topics.

Our Trading Risk Solutions Group’s core services include:

• Assessments, risk and solution enlightenment
• Benchmarking and peer analysis
• Business case and cost benefit reports
• Project/program planning/resourcing, governance
• Technology fitting and system configuration
• Data aggregation and analysis
• Implementation and delivery
• Risk framework design
• Front office supervision and controls
• Holistic monitoring
• Electronic and program trading risk and controls advisory
• Regulatory oversight and relationship management