About RSMS for CAT
Capital Market Solutions, a leading provider of regulatory, compliance, and reporting solutions for the financial industry, has developed the Regulatory and Surveillance Monitoring System (RSMS) to help clients navigate the complex regulatory landscape. One of the key features of RSMS is its comprehensive solution for the Consolidated Audit Trail (CAT) reporting requirements.
The Case
A mid-sized financial firm that utilizes CMS’s RSMS solution for CAT reporting discovered an issue with their vendor Trading system. The Order Event Timestamps for “non-manual” orders lacked the required millisecond precision, as per the FINRA CAT regulation. This regulation mandates that all Order Event Timestamps for “non-manual” orders must be reported with millisecond precision.
The firm’s reliance on the RSMS solution proved invaluable in this situation. The RSMS CAT Cross Validation engine flagged a significant number of “non-manual” orders that were missing the required millisecond precision in their timestamps. This prompt detection allowed the firm to take immediate corrective action.
How RSMS Helped
The RSMS solution played a crucial role in identifying and addressing the issue with the firm’s CAT reporting. The CAT Cross Validation engine within RSMS is designed to thoroughly examine the firm’s CAT data and ensure compliance with the regulatory requirements.
By flagging the instances where the “non-manual” order timestamps lacked the necessary millisecond precision, RSMS enabled the firm to take swift action. Without this proactive detection, the firm would have remained unaware of the incorrect reporting, exposing it to the risk of FINRA audits and potential disciplinary fines.
The RSMS solution’s comprehensive monitoring and validation capabilities allowed the firm to stay ahead of potential regulatory issues. The system’s ability to swiftly identify and alert the firm to the timestamp precision problem enabled the firm to rectify the issue before it escalated into a more serious compliance concern.
Conclusion
The case study highlights the value of Capital Market Solutions’ RSMS solution in helping financial firms navigate the complex and ever-evolving regulatory landscape. The RSMS CAT Cross Validation engine’s ability to detect and flag potential reporting issues, such as the lack of millisecond precision in order event timestamps, demonstrates the system’s effectiveness in ensuring compliance and mitigating regulatory risks.