Bulge Bracket Retail Brokerage and Private Bank

A bulge bracket broker-dealer had recently integrated securities-based margin lending and private banking after merging with a wealth management firm.  The firm's Basel II reporting systems lacked key process controls, rules transparency, and data consistency.  The firm needed expertise to capture requirements for full Basel II risk compliance and advancement to Basel III compliance, assess the accuracy and availability of securities collateral and customer data and to manage the development of a new reporting platform.

Approach

A MarketsTechnology & Compliance  consultant led an analysis effort to define Basel reporting requirements and rules.  Our consultant:

• Worked with credit, legal, compliance, regulatory reporting and IT staff to define requirements

• Produced requirements and functional design documents needed for developing the solution

• Defined rules and methods for translating data from various margin, loan, customer, securities reference, credit, and trading systems    

• Assessed, modeled, and validated data for collateral eligbility and enforceability rules and defined specific jurisdiction rules models

• Defined QA testing approaches

The MTC consultant also managed solution development progress. 

Results

Under our consultant’s leadership, the enhanced solution was implemented on schedule and addressed prior issues while providing complete transparency to the monthly reporting process.