Regs to Riches: How to use your regulatory reporting to improve your business processes and revenue

Regs to Riches

Often firms view complying with regulation as an obligation to avoid penalties and fines. However, have you considered how compliance can not only improve your business processes but add to your revenue as well? In this article, we will step you through the various ways in which you can use your regulatory reporting data to benefit your business.

Understand Product Demand

The data obtained from regulatory reporting enables you to easily see which asset classes your clients are trading most or not trading at all. Such information will help you tailor your products to client demand and can better inform your firm’s communication and marketing strategies. Saving you from expenditure on products (especially costly data feeds and server space) with little to no return.

Spot Your Weaknesses

Often the process and discipline of producing daily data exports can identify deficiencies that, once rectified, can deliver improvements in other parts of the business. The ability to produce daily reports enables to you to determine inadequacies in both your internal and outsourced processes. Resolving them will lead to improved efficiency and accuracy of your reporting as well as reduce the burden on your compliance resources.

Eliminate Unnecessary Losses

Utilising Best Execution monitoring can help identify transactions that indicate scalpers or significant slippage, allowing you to take relevant action early to eliminate the associated financial losses. TRAction’s Best Execution Monitor is a smart system that collects, analyses and compares your transaction data against market reference data to compute representative benchmarks that enable consistent and fair evaluation of performance. You are able to quickly and effectively identify a trade execution that is outside of your execution parameters and market prices.

Stay Competitive in a Growing Market

As trading platforms such as eToro and Robinhood continue to enter the market with ‘zero brokerage’ and ‘payment-for-order-flow’ investing structures, it’s becoming increasingly difficult for traditional brokers to compete. Although regulatory reporting is complicated, it’s also a barrier to entry for many new brokers. This means established brokers with concrete compliance frameworks and regulatory reporting processes will face less competition. Thus, the potential loss of clients to new competitors is minimised.

If you would like a demo of our Best Execution Monitor, want to further discuss how regulatory reporting could benefit your business or are looking for a delegated reporting solution, like TRAction, please do not hesitate to contact us.

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