Compliance

Compliance perfectly complements Scenarios with its robust risk-management capabilities. When a portfolio is accessed for either trading or analysis, pre-set rules automatically determine if the considered actions meet SEC regulations (Rule 2a-7 for money markets is supported), internal policies, or client guidance. Violations are displayed before any action is taken.

But Compliance is far more than a regulatory tool. It is designed to also provide business managers with the flexibility to better manage their internal policies and client guidelines as needs dictate. Managers can design their own rules and apply them to selected portfolios so that a “best practices” environment is well maintained.

  • As a regulatory tool, preset rules are defined, and IMS warns when an impending trade violates relevant regulations. As planned trades are altered, the violation window updates in real time. You can also report regulatory violations on historical activity.
  • Internal company policies dictate “how we do business”. Warnings are generated and a report is provided when any rule is violated.
  • Portfolio models can be designed to operate within a client’s specific guidelines. Compliance alerts users when a portfolio breaks pre-established client guidelines (i.e. fixed income concentration level must be no more than 25% and must be rated AA or better and amortized cost positions with a particular issuer can’t be > 10% of the overall portfolio). IMS will also suggest trades, based on these pre-established guidelines, to help bring the portfolio back in line.
  • Compliance rules can be maintained and updated locally. New rules are easy to build. Changing these rules is restricted by user rights.