ON THE MONITOR
Sounding the Alarm for Compliance Technology
June 7, 2010
Articles on information systems that securities firms use to comply with laws and regulations frequently focus on progress in a specific area – email archiving tools, for example – or on how impending rules could increase the demand for certain types of technology.
But Denise Valentine, a veteran industry analyst formerly with Celent and now with Aite Group, has another take entirely. Securities firms will want to pay close attention.
There is an “internal crisis unfolding in compliance,” Valentine says, stemming from a clash between the high cost of compliance technology and the apparent unwillingness of many firms to devote resources – technical, monetary or human -- to compliance.
In a startling report released May 26, “The Tragedy of Sell-Side Compliance: Warriors Defend the Gate,” Valentine catalogs the results of her lengthy first quarter 2010 conversations with a dozen senior compliance staff at broker-dealers, including chief compliance officers, senior compliance staff, and chief operating officers representing firms with 35 employees to those with over 10,000.
THE WEEK AHEAD:
MONDAY, JUNE 7
CONFERENCE: 9th Annual Hedge Fund Operations
Through June 9. Guoman Charing Cross Hotel, London
SPEECH: SEC Update, Meredith Cross, Director, Division of Corporation Finance
7:45 a.m. (Pacific) 2010National Investor Relations Institute Conference, San Diego
EVENT: Strengthening your Risk Organization and Culture
5:30 p.m. (Pacific), Professional Risk Managers International at McKinsey & Co., 555 California Street, San Francisco
TUESDAY, JUNE 8
EVENT: New Frontiers of OTC Derivatives Processing
7 a.m. (Eastern), Capital Markets Consortium, Bayards, Hanover Square, NY
THURSDAY, JUNE 10
SPEECH: SEC Regulation Outside the U.S., Commissioner Elisse B. Walter
8:50 a.m. (Greenwich Mean Time), Copthorne Tara Hotel, London
WEBCAST: Solving Pain Points in Virtual Storage
2 p.m. (Eastern), World Wide Technology
THE WEEK THAT WAS:
Rosenblatt: “I’m Not Sure We Want to Penalize Speed”
Singapore Exchange to Use Nasdaq OMX High-Speed Technology
ICE Trust Buy-side CDS Clearing Exceeds $1 Billion
DTCC Aggregates Trade-for-Trade Transactions
Large Trader Reporting: Travails of Real-Time Surveillance
“Regulatory Capture” Led to Inaccurate Credit Ratings: Kolchinsky
Revamp looms as trading experts huddle at SEC
Volatility Villains: You, Me and the Flash Traders
Finra Panel: Credit Suisse To Pay $9.8M In Auction Rate Case
