ChecknTrade Nieuws

6 November 2003 - ChecknTrade introduces the IMS concept in Amsterdam to compliance officers at fund managing firms.

Our IMS solution offers a valuable contribution towards solving this problem.

Participants in the discussion first gave a short description of the current policies and procedures. It appeared that in daily practice insiders face strict rules combined with manual checks afterwards. Regulations are applied very strictly; "insiders are simply not allowed to trade"  which makes checking an easy procedure.

A representative of Baker & McKenzie was present  at this meeting to give an idea of the legal complications. Regulations and implementation were considered, as well as those cases in which actual (legal) steps would be taken bij a regulator. Not all rules and regulations, Baker & McKenzie stated, can be captured in an automated decision model. ChecknTrade claimed to offer an adequate solution: their rules-engine and decision-manager can seperate transactions which can be managed automatically from those that have to be assessed by a compliance officer.

All transactions remain available for reference in an environement that functions as a reporting tool: Any unusal transactions can be analysed and reported in their own context (together with other transactions by the same person or transactions in the same fund by other people)

The conclusion of this meeting was, that IMS could be a valuable tool in managing data (storage, analysis and reporting) concerning insider trading. The quality of automatic pre-clearance depends on the way in which regulations can be captured in decision models. CnT indicated that the AFM consideres this to be a condition for regulations that have to be implemented. 

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