Personal Trading Financial Compliance Software

PERSONAL TRADING

Detect conflicts of interest in employee trading activity

Personal trading by employees can cause conflicts of interest in any investment business. To minimize this risk, employees need to ‘pre-clear’ any intended transactions. StarCompliance software automates this process, assessing requests against a fully configurable rules engine to give the employee a rapid permission or refusal to trade. The system helps employees ensure they operate in full compliance with regulatory requirements and company policies.

2-minute teaser

View a short walk-through of the Personal Trading Product and some of the Platform’s key features.

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Your STAR Personal Trading product offers:

Pre-clearance

FAST, AUTOMATED DECISIONS

The STAR platform enables you to automate all of your personal trading pre-clearance activities. Employees can use the system to quickly ask permission to make personal investments. They simply log in to the web-based application, fill out a pre-clearance request form and await an automated approval or denial decision.

The pre-clearance feature maximizes the benefits of STAR’s integration with your company’s HR system, so all details about each employee are taken into account, along with historical trading records, when making decisions about whether a requested trade constitutes a conflict of interest.

Once trades are approved, the employee’s broker can send an electronic notification confirming that the trade has taken place. This enables your compliance team to use the system to conduct post-trade checks, ensuring that approved trades are completed accurately.

Surveillance

IDENTIFY PATTERNS OR ANOMALIES IN BEHAVIOR

The STAR platform collects and integrates data from systems across your business, which are cross-referenced when any pre-clearance request is made – to ensure there are no conflicts of interest. Data is drawn from HR, order-management systems and executed trade records, as well as public data sources, such as news feeds.

Your compliance team can set the rules for automatically surveying this data, whenever an employee executes a trade. They can also use the system to survey employee records for anomalies or patterns of behavior that may require investigation.

Reporting and management information

ALL THE DATA YOU NEED AT YOUR FINGERTIPS

The STAR software includes a comprehensive reporting and management information suite. It gives compliance teams a 360-degree view of all employee behavior and activity, allowing them to search for data in any field and export information for further analysis.

Importantly, for compliance directors and managers, the platform generates comprehensive, meaningful, easily accessible reports. There are more than 100 standard reports in the system, and you can design many more to suit your requirements. You can choose from a range of useful visualizations, graphs and charts to make the information clear and easy to interpret and compare.

In addition, a suite of reports can be generated and distributed automatically at required intervals. The reports can be displayed in-app, saved for later use, distributed via email or exported to Excel spreadsheets.

Trading rules

CONFIGURED FOR YOUR BUSINESS

The rules applied to employee pre-clearance trade requests by the STAR software are highly configurable. Each trade request goes through a rules engine programmed with your business’s specific rules and policies. In cases where automated approval or denial is not possible, the system will escalate the request to a multi-level review process, with queries sent out to relevant decision-makers in your business. You can create review triggers to add multiple tiers of review before a request is approved. Dynamic controls ensure that reviews are carried out quickly and efficiently.

Case management

KEEP TRACK OF ALL REVIEWS AND INVESTIGATIONS

The StarCompliance case-management feature brings together all possible trading breaches that may require investigation and resolution by the compliance team. You can collate data and evidence, add annotations and assign the case to relevant team members for resolution. The whole cycle, from detection through investigation to resolution is recorded on the system for audit purposes, with management reports available to help identify trends and support continuous improvement.

Employee trade data

simple, efficient data management

Managing your employee trading data is made simple and efficient by the broker feed reconciliation and automatic transaction-matching capabilities of the STAR platform. Our partner organizations provide over 70 up-to-date broker feeds that are reconciled against submitted employee data, enabling internally held data to be updated and abnormalities detected. Using the STAR system entirely removes the need for paper statements to be manually checked.

By partnering with leading investment and data management organisations, we offer:

Secure Data Entry
This service removes the burden of manual entry when processing personal trade statements. It extracts key data from paper brokerage account statements and confirmations through an automatic, electronic data feed, and provides them to your compliance team in a standardized, intuitive format. Original copies are scanned and preserved in a secure and searchable online document library.

ByAllAccounts
ByAllAccounts is a patented data aggregation engine that retrieves, enriches and consolidates data from any custodian to provide a unified, comprehensive and fully integrated feed of broker account information. Its consolidated broker data is imported directly into STAR each working day to ensure the system is fully up to date. This allows you to automate your compliance processes for monitoring personal trading activity when using brokers that don’t provide direct electronic data feeds.

Financial Data Services
By partnering with a leading global provider of financial market data, analytics and related services, we give you access to time-sensitive pricing, evaluation and reference data for more than ten million securities traded around the world, including hard-to-value instruments. This enables StarCompliance to offer a shared resource that you can use to access the latest data on equities, UITs, mutual funds, debt instruments and more.

In addition to the Exchange Symbol, CUSIP, ISIN and Sedol, the STAR application allows employees to search and match on the FIGI and Bloomberg ticker. This ensures that employees are more likely to select the correct security and increases the application’s ability to accurately match transactional data from broker feeds with security related records on the system.