Why Broker Dealers Need to Start Addressing New Compliance Regulations

Advanced technologies have created new opportunities in capital markets. But they have also opened the door for unethical and illegal trading practices, placing broker dealers under enormous regulatory scrutiny.

Electronic trading practices have transformed compliance issues into multi-asset, multi-event scenarios. Firm58’s whitepaper, “The Evolution of Compliance: Why Broker Dealers Need to Renew Their Regulatory Vows,” addresses the compliance challenges broker dealers face in the current regulatory environment.

  1. Cybersecurity – Trading practices are shifting to the digital space, and broker dealers must take extra precautions to protect their organizations against cybersecurity risks that threaten data integrity.
  1. Data Transparency – Broker dealers must revisit data management practices, and begin collecting and aggregating data in a way that makes it useful, transparent and actionable.
  1. Company Culture – Broker dealers have already spent at least $300 billion in non-compliance fees. To improve compliance, recent SEC and FINRA regulations require broker dealers to structure incentives and penalties in a manner that promotes responsible trading practices.

By leveraging both internal and external resources to address these problems, broker dealers can protect their organizations, and meet federal and industry regulations.

For more information, complete the form at the right to download “The Evolution of Compliance: Why Broker Dealer Need to Renew Their Regulatory Vows.”