Recently, the SEC adopted new rules to require certain key market participants to have comprehensive policies and procedures in place surrounding their technology (Regulation SCI).
Exchanges, SROs, selected alternative trading systems (ATS), plan processors, and exempt clearing agencies are required to design, develop, test, maintain, and oversee their mission-critical systems.
The rules require them to ensure that their core technology meets certain standards, conduct regular business continuity testing, and provide certain notifications in the event of systems disruptions, intrusions and other events.
Meeting the demanding new requirements imposed upon firms by SEC Regulation SCI is a key issue for many market participants, especially in the areas of independent systems testing and certification.
Tellefsen and Company, L.L.C. (Tellefsen) and Exactpro Systems, LLC (Exactpro) have today announced a marketing partnership in which both firms will collaborate to provide key industry constituents with market structure consulting, financial technology infrastructure testing and software quality assurance testing services.
ConceptOne - Whitepaper - Achieving Regulatory Alpha Through Regulatory Risk ...Gary S. Kaminsky
This document summarizes a whitepaper on achieving regulatory compliance through implementing a robust Regulatory Enterprise Risk Management (RegERM) system. It discusses the increased global regulatory requirements asset managers now face. It recommends managers focus on regulatory compliance costs rather than just direct compliance costs. The document outlines key components of an effective RegERM system, including consolidating data from multiple sources, transforming the data for reporting requirements, and electronically transmitting reports. It emphasizes the importance of coordination among service providers, technology, and regulatory advisors to streamline the reporting process.
Riskpro is an Indian organization that provides risk management consulting services through member firms located in major Indian cities. It aims to be the preferred provider of governance, risk, and compliance solutions. Riskpro has over 200 years of cumulative experience among its experienced professionals. It offers quality advisory services at affordable rates for mid-large sized corporate and financial institutions. Key services include credit, operational, and fraud risk consulting as well as regulatory compliance, enterprise risk management, and outsourcing management.
Powering SOX, NERC, FERC Compliance -Energy Industry MetricStream Inc
This document discusses an energy company's implementation of MetricStream to improve its compliance processes. The company faces numerous regulatory requirements that were previously managed through an internally-developed system. MetricStream will provide the company with an integrated platform to streamline compliance for regulations like SOX, FERC, and NERC. It will establish a centralized framework to map processes, risks, controls and assessments. MetricStream will also automate workflows, surveys, and reporting to improve efficiency and transparency across the large, complex organization.
Embedding compliance: how to integrate sarbanes-oxley in your projects3gamma
Internal controls are incredibly important to business operations but are often seen as something abstract and separate while they in fact should be part of business as usual and all ongoing development activities. Trying to resolve and remedy a lack of internal controls as a separate, post-event activity is not only risky – it’s also expensive. Control and assurance must be based on the business risk, be in line with external rules and regulations and be built in from the start.
Following the financial crisis and exasperated by head-lined breaches of compliance, regulated firms are now subject to a plethora of regulations as governments seek to regulate as a means of protecting individual economies. As a result, firms now face the biggest challenge yet … Regulatory Risk, being the risk of non-compliance and the penalties and reputational risk that follow.
Recently, the SEC adopted new rules to require certain key market participants to have comprehensive policies and procedures in place surrounding their technology (Regulation SCI).
Exchanges, SROs, selected alternative trading systems (ATS), plan processors, and exempt clearing agencies are required to design, develop, test, maintain, and oversee their mission-critical systems.
The rules require them to ensure that their core technology meets certain standards, conduct regular business continuity testing, and provide certain notifications in the event of systems disruptions, intrusions and other events.
Meeting the demanding new requirements imposed upon firms by SEC Regulation SCI is a key issue for many market participants, especially in the areas of independent systems testing and certification.
Tellefsen and Company, L.L.C. (Tellefsen) and Exactpro Systems, LLC (Exactpro) have today announced a marketing partnership in which both firms will collaborate to provide key industry constituents with market structure consulting, financial technology infrastructure testing and software quality assurance testing services.
ConceptOne - Whitepaper - Achieving Regulatory Alpha Through Regulatory Risk ...Gary S. Kaminsky
This document summarizes a whitepaper on achieving regulatory compliance through implementing a robust Regulatory Enterprise Risk Management (RegERM) system. It discusses the increased global regulatory requirements asset managers now face. It recommends managers focus on regulatory compliance costs rather than just direct compliance costs. The document outlines key components of an effective RegERM system, including consolidating data from multiple sources, transforming the data for reporting requirements, and electronically transmitting reports. It emphasizes the importance of coordination among service providers, technology, and regulatory advisors to streamline the reporting process.
Riskpro is an Indian organization that provides risk management consulting services through member firms located in major Indian cities. It aims to be the preferred provider of governance, risk, and compliance solutions. Riskpro has over 200 years of cumulative experience among its experienced professionals. It offers quality advisory services at affordable rates for mid-large sized corporate and financial institutions. Key services include credit, operational, and fraud risk consulting as well as regulatory compliance, enterprise risk management, and outsourcing management.
Powering SOX, NERC, FERC Compliance -Energy Industry MetricStream Inc
This document discusses an energy company's implementation of MetricStream to improve its compliance processes. The company faces numerous regulatory requirements that were previously managed through an internally-developed system. MetricStream will provide the company with an integrated platform to streamline compliance for regulations like SOX, FERC, and NERC. It will establish a centralized framework to map processes, risks, controls and assessments. MetricStream will also automate workflows, surveys, and reporting to improve efficiency and transparency across the large, complex organization.
Embedding compliance: how to integrate sarbanes-oxley in your projects3gamma
Internal controls are incredibly important to business operations but are often seen as something abstract and separate while they in fact should be part of business as usual and all ongoing development activities. Trying to resolve and remedy a lack of internal controls as a separate, post-event activity is not only risky – it’s also expensive. Control and assurance must be based on the business risk, be in line with external rules and regulations and be built in from the start.
Following the financial crisis and exasperated by head-lined breaches of compliance, regulated firms are now subject to a plethora of regulations as governments seek to regulate as a means of protecting individual economies. As a result, firms now face the biggest challenge yet … Regulatory Risk, being the risk of non-compliance and the penalties and reputational risk that follow.
Our trading infrastructure for next generation trading with quant and automat...Bryan Downing
This document discusses tools for developing trading infrastructure and algorithms. It recommends Matlab for prototyping due to its ease of use, training resources, and acceptance in financial institutions. For implementation, it suggests using Microsoft .NET with C# for the fastest development time to market, and deploying on Windows Server. It recommends IQFeed for real-time and historical market data, and Interactive Brokers for affordable order execution that supports automation through their API. It also promotes joining QuantLabs.net for learning resources.
Дракон в мешке: от LLVM к C++ и проблемам неопределенного поведенияPlatonov Sergey
В этом докладе Дмитрий кратко рассказывает о таком звере, как LLVM, о котором много кто слышал, но немногие щупали.
Что такое компилятор на самом деле? Как происходит компиляция программы, как работают оптимизации и, наконец, откуда берется неопределенное поведение в детерменированных программах на C++?
C++ on its way to exascale and beyond -- The HPX Parallel Runtime SystemThomas Heller
The High Performance Computing (HPC) community is facing a technology shift which will result in a performance boost by three orders of magnitudes within the next 5 years. This rise of performance will mainly be acquainted by increasing the level of concurrency in such a way that a user of those systems needs to accommodate to billion way parallelism. The main problems to solve are: Programmability, Portability, Energy Saving and Resiliency. The author believes that leveraging modern C++ will lead to a possible solution to those problems from a software perspective.
This talk will discuss the use of C++ in such a massively parallel environment: Using the HPX Parallel Runtime System - a future based API - to present a lightweight and efficient mechanism to support massively parallel, multi-way parallelism.
A Flash Crash Simulator: Analyzing HFT's Impact on Market QualityYoshi S.
A 2014 CFTC report has concluded that the 2010 Flash Crash was not caused by high-frequency traders but was exacerbated by them with their market-making strategy known as the electronic liquidity provision (ELP). This paper presents a computational analysis of the impact of ELP-HFTs on core market quality during a flash crash. Specifically examined is how ELP-HFTs affect the attributes of core market quality such as liquidity, bid-ask spreads, and short-term price volatility. To investigate the question, we build a zero-intelligence limit order book (LOB) simulator from scratch, implement the ELP strategy in it, and execute simulations in which a flash crash is artificially created. Our results show that ELP-HFTs reduce bid-ask spreads, mitigate short-term volatility, and increase total trade volume. The increase in total trade volume is attributed to what is known as the “hot-potato” effect, which was also observed during the 2010 Flash Crash. However, we conclude that the ELP strategy by itself does not amplify directional price moves despite hot-potato effects.
SEC Regulation SCI, ARP Reviews and AuditsJohn Rapa
The document discusses the SEC's proposed Regulation SCI which would require certain key market participants like exchanges and clearing agencies to implement comprehensive policies around their technology. It would replace voluntary guidelines with enforceable rules around areas like systems design, testing, and incident response. Recent market events showed technology failures can impact investors and market confidence. The new rules are aimed at reducing technology problems and ensuring proper response if issues do occur. Tellefsen & Company has expertise in helping clients comply with such regulations through activities like automation reviews, testing, and regulatory filings.
Binary code obfuscation through c++ template meta programmingnong_dan
This document presents methods for obfuscating C++ code through the use of template metaprogramming. It introduces template metaprogramming in C++ and how it can be used to perform computations at compile time. It then describes how to add randomization to template metaprograms using a linear congruential pseudorandom number generator. The document outlines various techniques for obfuscating integer arithmetic operations, including through the use of identities from boolean logic and two's complement arithmetic. It also discusses the insertion of opaque predicates to increase program complexity and generation of dead code. Finally, it covers obfuscating data values through encryption and masking techniques.
A Multicore Parallelization of Continuous Skyline Queries on Data StreamsTiziano De Matteis
This document summarizes a research paper on parallelizing continuous skyline queries over data streams using multicore processors. The paper presents an eager algorithm for computing skyline queries over sliding windows of data streams. It parallelizes the algorithm using a map-reduce pattern across multiple worker threads, and proposes optimizations like asynchronous reduce and load-balancing owner selection policies. Experimental results show the parallel approach achieves near-linear speedup and scales throughput up to hundreds of thousands of points processed per second.
CPU Subsystem Total Power Consumption: Understanding the Factors and Selectin...CAST, Inc.
Power consumption figures for a processor core only tell part of the energy usage story for a CPU subsystem.
Smart IP choices regarding performance, instruction set architecture, required memory operations and size, and other factors can also significantly reduce the real-world total power required for such subsystems. Learn how to better assess these factors through practical comparisons with processor cores supporting the BA2 ISA, which offer both extreme code density and excellent performance (see http://www.cast-inc.com/ba22).
Register for this free webinar:
Dec 13 at 10am Pacific Standard Time (PST) — 1pm USA Eastern, 10am USA Pacific
https://attendee.gotowebinar.com/rt/6662961646095173120
EXANTE Cross-Asset Portfolio Margin Risk Calculation for Hedge Funds TradingEXANTE
This document proposes a new risk calculation and control system for a broker that provides algorithmic trading. The current risk scheme has drawbacks like slow limit updates, a lack of portfolio margin calculation, and high traffic between components. The proposed system would calculate risk in near real-time using cross-asset portfolio margining. It would leverage margin coefficients that do not depend on accounts and centralized free money calculations to determine symbol limits. This approach aims to provide fast risk updates and checks while supporting a large number of symbols and accounts and using orders data to calculate accurate portfolio margins.
CAST BA22 32-bit Processor Design Seminar, 2/1/12CAST, Inc.
Slides from our seminar at DesignCon (updated with current stats):
A New 32-bit Choice: Using the BA22 Processor Core in Deeply Embedded Systems or as a Full Application Processor
Ch.14: Introducing Variety in Risk ManagementYoshi S.
This document discusses introducing the concept of variety as a measure of risk in financial markets. It defines variety as the dispersion of returns across stocks on a given day, as opposed to volatility which measures fluctuations in the overall market index. The document presents a one-factor model showing that variety and volatility should be positively correlated. Empirical analysis finds variety is correlated with the market return and the correlation differs based on whether the market return was positive or negative. Large positive market days show skewness toward a few outperforming stocks, while large negative days show the opposite skewness.
CAST president Hal Barbour discusses building trust between electronic designers and their semiconductor IP providers at the Constellations Seminar, 3/31/2010, Santa Clara, CA. See www,cast-inc.com for info.
The document discusses the importance of land ownership and not taking or selling land without permission. It provides commentary on social and economic development in Cambodia, noting the need to establish clear regulations and management of natural resources for the benefit of the people and future generations.
Industry impact and lessons learned from hurricane sandy summary report 010913John Rapa
The survey found that while investment management firms were well-prepared for Hurricane Sandy thanks to advance warnings, the storm still caused major disruptions. Firms activated business continuity plans ahead of the storm and few had to fail over to disaster recovery sites. However, widespread power outages and transportation closures made it difficult for many employees to telecommute or get to work. As a result, firms are re-evaluating locations of facilities and the reliance on key service providers. The storm demonstrated the importance of effective communication, testing of plans, and leveraging global offices during incidents.
Parallel Patterns for Window-based Stateful Operators on Data Streams: an Alg...Tiziano De Matteis
Talk given at HLPP 2015
For the version with transition please check: https://docs.google.com/presentation/d/1yhsSff97f434wR-VA1szlqKxx52YMYKkdw1GVkBDyF8/edit?usp=sharing
This document provides a summary of a book about developing a digital banking strategy. It discusses how most banking systems are outdated given advances in technology and customer demands for digital services. The book provides insights from banking experts on how to evolve business models to adapt to mobile and cloud computing. It also profiles examples of innovative digital approaches from both traditional banks and startups. The summary concludes that the book is essential for understanding the future of banking, commerce, and business in the digital age.
Tellefsen and Exactpro Systems Team Up to Help Clients with REG SCI
Meeting the demanding new requirements imposed upon firms by SEC Regulation SCI
is a key issue for many firms, especially in the areas of independent systems testing
and certification. Tellefsen and Company, L.L.C. (Tellefsen) and Exactpro Systems,
LLC (Exactpro) have today announced a marketing partnership in which both firms will
collaborate to provide key industry constituents with market structure consulting, financial
technology infrastructure testing and software quality assurance testing services.
Tellefsen is a management consulting firm founded in 1984 to provide counsel and
professional services to meet the growing needs of the financial services industry. The
firm’s principals and consultants have a wealth of experience in regulatory compliance
and U.S. market infrastructure (exchanges, ATS, dark pools etc). One of Tellefsen’s core
competencies has been is assisting firms with their regulatory compliance requirements
through technology analysis, planning, testing, and evidencing.
Exactpro is a rapidly growing quality assurance services firm specializing in market
infrastructure. Exactpro provides both functional and non-functional testing for global
exchanges, dark pools and clearing houses using a range of sophisticated in-house built
testing and evidencing tools.
John Rapa, President and CEO of Tellefsen, indicates: “The implementation of Reg SCI
is another example of market regulations where market participants must provide evidence
of their comprehensive infrastructure testing, policies and procedures and market oversight
compliance. We are delighted to team up with Exactpro whom we know from other customer
engagements. We are very impressed by their capabilities, diligence and effectiveness in
planning, executing and evidencing tests that prove regulatory compliance”.
Iosif Itkin, Co-Founder of Exactpro, says: “Our firm has a great set of tools and services that
we believe can help clients meet Regulation SCI in a cost effective manner. We are very
conversant with this domain and are delighted to be working with Tellefsen on this; our two
firms’ capabilities are entirely complementary”.
The document discusses regulatory requirements for trade reporting and monitoring from FINRA, NASDAQ, and other agencies. It covers requirements around accepting trades within 20 minutes on NASDAQ, reporting trades to the Order Audit Trail System (OATS) according to specific data elements and timestamps. FINRA can measure compliance for OATS and TRACE (Trade Reporting and Compliance Engine) based on metrics like late submissions and unmatched reports. The document also provides an example audit approach and discusses direct market access (DMA) tools, associated risks, and evolving governance/regulations.
Our trading infrastructure for next generation trading with quant and automat...Bryan Downing
This document discusses tools for developing trading infrastructure and algorithms. It recommends Matlab for prototyping due to its ease of use, training resources, and acceptance in financial institutions. For implementation, it suggests using Microsoft .NET with C# for the fastest development time to market, and deploying on Windows Server. It recommends IQFeed for real-time and historical market data, and Interactive Brokers for affordable order execution that supports automation through their API. It also promotes joining QuantLabs.net for learning resources.
Дракон в мешке: от LLVM к C++ и проблемам неопределенного поведенияPlatonov Sergey
В этом докладе Дмитрий кратко рассказывает о таком звере, как LLVM, о котором много кто слышал, но немногие щупали.
Что такое компилятор на самом деле? Как происходит компиляция программы, как работают оптимизации и, наконец, откуда берется неопределенное поведение в детерменированных программах на C++?
C++ on its way to exascale and beyond -- The HPX Parallel Runtime SystemThomas Heller
The High Performance Computing (HPC) community is facing a technology shift which will result in a performance boost by three orders of magnitudes within the next 5 years. This rise of performance will mainly be acquainted by increasing the level of concurrency in such a way that a user of those systems needs to accommodate to billion way parallelism. The main problems to solve are: Programmability, Portability, Energy Saving and Resiliency. The author believes that leveraging modern C++ will lead to a possible solution to those problems from a software perspective.
This talk will discuss the use of C++ in such a massively parallel environment: Using the HPX Parallel Runtime System - a future based API - to present a lightweight and efficient mechanism to support massively parallel, multi-way parallelism.
A Flash Crash Simulator: Analyzing HFT's Impact on Market QualityYoshi S.
A 2014 CFTC report has concluded that the 2010 Flash Crash was not caused by high-frequency traders but was exacerbated by them with their market-making strategy known as the electronic liquidity provision (ELP). This paper presents a computational analysis of the impact of ELP-HFTs on core market quality during a flash crash. Specifically examined is how ELP-HFTs affect the attributes of core market quality such as liquidity, bid-ask spreads, and short-term price volatility. To investigate the question, we build a zero-intelligence limit order book (LOB) simulator from scratch, implement the ELP strategy in it, and execute simulations in which a flash crash is artificially created. Our results show that ELP-HFTs reduce bid-ask spreads, mitigate short-term volatility, and increase total trade volume. The increase in total trade volume is attributed to what is known as the “hot-potato” effect, which was also observed during the 2010 Flash Crash. However, we conclude that the ELP strategy by itself does not amplify directional price moves despite hot-potato effects.
SEC Regulation SCI, ARP Reviews and AuditsJohn Rapa
The document discusses the SEC's proposed Regulation SCI which would require certain key market participants like exchanges and clearing agencies to implement comprehensive policies around their technology. It would replace voluntary guidelines with enforceable rules around areas like systems design, testing, and incident response. Recent market events showed technology failures can impact investors and market confidence. The new rules are aimed at reducing technology problems and ensuring proper response if issues do occur. Tellefsen & Company has expertise in helping clients comply with such regulations through activities like automation reviews, testing, and regulatory filings.
Binary code obfuscation through c++ template meta programmingnong_dan
This document presents methods for obfuscating C++ code through the use of template metaprogramming. It introduces template metaprogramming in C++ and how it can be used to perform computations at compile time. It then describes how to add randomization to template metaprograms using a linear congruential pseudorandom number generator. The document outlines various techniques for obfuscating integer arithmetic operations, including through the use of identities from boolean logic and two's complement arithmetic. It also discusses the insertion of opaque predicates to increase program complexity and generation of dead code. Finally, it covers obfuscating data values through encryption and masking techniques.
A Multicore Parallelization of Continuous Skyline Queries on Data StreamsTiziano De Matteis
This document summarizes a research paper on parallelizing continuous skyline queries over data streams using multicore processors. The paper presents an eager algorithm for computing skyline queries over sliding windows of data streams. It parallelizes the algorithm using a map-reduce pattern across multiple worker threads, and proposes optimizations like asynchronous reduce and load-balancing owner selection policies. Experimental results show the parallel approach achieves near-linear speedup and scales throughput up to hundreds of thousands of points processed per second.
CPU Subsystem Total Power Consumption: Understanding the Factors and Selectin...CAST, Inc.
Power consumption figures for a processor core only tell part of the energy usage story for a CPU subsystem.
Smart IP choices regarding performance, instruction set architecture, required memory operations and size, and other factors can also significantly reduce the real-world total power required for such subsystems. Learn how to better assess these factors through practical comparisons with processor cores supporting the BA2 ISA, which offer both extreme code density and excellent performance (see http://www.cast-inc.com/ba22).
Register for this free webinar:
Dec 13 at 10am Pacific Standard Time (PST) — 1pm USA Eastern, 10am USA Pacific
https://attendee.gotowebinar.com/rt/6662961646095173120
EXANTE Cross-Asset Portfolio Margin Risk Calculation for Hedge Funds TradingEXANTE
This document proposes a new risk calculation and control system for a broker that provides algorithmic trading. The current risk scheme has drawbacks like slow limit updates, a lack of portfolio margin calculation, and high traffic between components. The proposed system would calculate risk in near real-time using cross-asset portfolio margining. It would leverage margin coefficients that do not depend on accounts and centralized free money calculations to determine symbol limits. This approach aims to provide fast risk updates and checks while supporting a large number of symbols and accounts and using orders data to calculate accurate portfolio margins.
CAST BA22 32-bit Processor Design Seminar, 2/1/12CAST, Inc.
Slides from our seminar at DesignCon (updated with current stats):
A New 32-bit Choice: Using the BA22 Processor Core in Deeply Embedded Systems or as a Full Application Processor
Ch.14: Introducing Variety in Risk ManagementYoshi S.
This document discusses introducing the concept of variety as a measure of risk in financial markets. It defines variety as the dispersion of returns across stocks on a given day, as opposed to volatility which measures fluctuations in the overall market index. The document presents a one-factor model showing that variety and volatility should be positively correlated. Empirical analysis finds variety is correlated with the market return and the correlation differs based on whether the market return was positive or negative. Large positive market days show skewness toward a few outperforming stocks, while large negative days show the opposite skewness.
CAST president Hal Barbour discusses building trust between electronic designers and their semiconductor IP providers at the Constellations Seminar, 3/31/2010, Santa Clara, CA. See www,cast-inc.com for info.
The document discusses the importance of land ownership and not taking or selling land without permission. It provides commentary on social and economic development in Cambodia, noting the need to establish clear regulations and management of natural resources for the benefit of the people and future generations.
Industry impact and lessons learned from hurricane sandy summary report 010913John Rapa
The survey found that while investment management firms were well-prepared for Hurricane Sandy thanks to advance warnings, the storm still caused major disruptions. Firms activated business continuity plans ahead of the storm and few had to fail over to disaster recovery sites. However, widespread power outages and transportation closures made it difficult for many employees to telecommute or get to work. As a result, firms are re-evaluating locations of facilities and the reliance on key service providers. The storm demonstrated the importance of effective communication, testing of plans, and leveraging global offices during incidents.
Parallel Patterns for Window-based Stateful Operators on Data Streams: an Alg...Tiziano De Matteis
Talk given at HLPP 2015
For the version with transition please check: https://docs.google.com/presentation/d/1yhsSff97f434wR-VA1szlqKxx52YMYKkdw1GVkBDyF8/edit?usp=sharing
This document provides a summary of a book about developing a digital banking strategy. It discusses how most banking systems are outdated given advances in technology and customer demands for digital services. The book provides insights from banking experts on how to evolve business models to adapt to mobile and cloud computing. It also profiles examples of innovative digital approaches from both traditional banks and startups. The summary concludes that the book is essential for understanding the future of banking, commerce, and business in the digital age.
Tellefsen and Exactpro Systems Team Up to Help Clients with REG SCI
Meeting the demanding new requirements imposed upon firms by SEC Regulation SCI
is a key issue for many firms, especially in the areas of independent systems testing
and certification. Tellefsen and Company, L.L.C. (Tellefsen) and Exactpro Systems,
LLC (Exactpro) have today announced a marketing partnership in which both firms will
collaborate to provide key industry constituents with market structure consulting, financial
technology infrastructure testing and software quality assurance testing services.
Tellefsen is a management consulting firm founded in 1984 to provide counsel and
professional services to meet the growing needs of the financial services industry. The
firm’s principals and consultants have a wealth of experience in regulatory compliance
and U.S. market infrastructure (exchanges, ATS, dark pools etc). One of Tellefsen’s core
competencies has been is assisting firms with their regulatory compliance requirements
through technology analysis, planning, testing, and evidencing.
Exactpro is a rapidly growing quality assurance services firm specializing in market
infrastructure. Exactpro provides both functional and non-functional testing for global
exchanges, dark pools and clearing houses using a range of sophisticated in-house built
testing and evidencing tools.
John Rapa, President and CEO of Tellefsen, indicates: “The implementation of Reg SCI
is another example of market regulations where market participants must provide evidence
of their comprehensive infrastructure testing, policies and procedures and market oversight
compliance. We are delighted to team up with Exactpro whom we know from other customer
engagements. We are very impressed by their capabilities, diligence and effectiveness in
planning, executing and evidencing tests that prove regulatory compliance”.
Iosif Itkin, Co-Founder of Exactpro, says: “Our firm has a great set of tools and services that
we believe can help clients meet Regulation SCI in a cost effective manner. We are very
conversant with this domain and are delighted to be working with Tellefsen on this; our two
firms’ capabilities are entirely complementary”.
The document discusses regulatory requirements for trade reporting and monitoring from FINRA, NASDAQ, and other agencies. It covers requirements around accepting trades within 20 minutes on NASDAQ, reporting trades to the Order Audit Trail System (OATS) according to specific data elements and timestamps. FINRA can measure compliance for OATS and TRACE (Trade Reporting and Compliance Engine) based on metrics like late submissions and unmatched reports. The document also provides an example audit approach and discusses direct market access (DMA) tools, associated risks, and evolving governance/regulations.
Towards Automating Security Compliance Value Chain_FSE15_2June_submitted_finalSmita S. Ghaisas
This document proposes an approach to automate key activities in the security compliance value chain. It discusses automating the interpretation of PCI-DSS regulations to identify system requirements, tracing these requirements to CIS security controls, implementing appropriate controls, and verifying and reporting compliance. The approach uses a rule model to interpret regulations and classify them based on rule intents and acts. It applies natural language processing to 209 PCI-DSS regulations and traces 189 technological regulations to over 400 CIS security controls for Windows Server 2008. An evaluation achieves 80-83% precision and recall in automated interpretation.
Enterprise Governance Risk and Compliance (GRC) Management Solution in IndiaLexComply
Having most comprehensive coverage of compliance amongst the available GRC solutions in India, we ensure you don’t miss any compliance or legal updates . Know all you need about compliance in a single screen.
Six Keys to Securing Critical Infrastructure and NERC ComplianceLumension
With the computer systems and networks of electric, natural gas, and water distribution systems now connected to the Internet, the nation’s critical infrastructure is more vulnerable to attack. A recent Wall Street Journal article stated that many utility IT environments have already been breached by spies, terrorists, and hostile countries, often leaving bits of code behind that could be used against critical infrastructure during times of hostility. The U.S. Cyber Consequence Unit declared that the cost of such an attack could be substantial: “It is estimated that the destruction from a single wave of cyber attacks on U.S. critical infrastructures could exceed $700 billion USD - the equivalent of 50 major hurricanes hitting U.S. soil at once.”
Vulnerability and exposure of utilities’ critical infrastructures originate from the Supervisory Control and Data Acquisition (SCADA) and Distribution Automation (DA) systems that communicate and control devices on utility grids and distribution systems. Many of these systems have been in operation for years (sometimes for decades), and are not designed with security in mind. Regulatory bodies have recognized the many security issues to critical infrastructure and have begun to establish and enforce requirements in an attempt to shore up potential exposures. One such regulation is NERC CIP, which includes eight reliability standards consisting of 160 requirements for electric and power companies to address. And as of July 1, 2010, these companies must be “auditably compliant” or else they risk getting slapped with a $1 million per day, per CIP violation.
In this roundtable discussion, we will highlight:
• The security challenges facing utilities today
• The six critical elements to achieving economical NERC CIP compliance
• How utilities can secure critical infrastructure in today’s networked environment
Maveric Systems offers anti-money laundering (AML) testing and assurance services to help financial institutions address challenges in maintaining compliance. Their risk-based testing approach helps clients improve the effectiveness of rules and scenarios, cover all critical scenarios required by regulations, and assess gaps in current transaction monitoring programs. Maveric's certified experts provide experience implementing AML requirements globally across different bank products and transaction monitoring systems.
STW Fixed Income Management implemented Corticon's business rules management system to automate complex investment portfolio management rules and regulations in order to improve operational efficiencies, reduce costs, and maintain a competitive edge. Key applications developed with Corticon include pre- and post-trade compliance checking, daily compliance monitoring, automated after-tax performance reporting, and an integrated accounting system. Corticon's model-driven rules approach allowed STW to build these sophisticated rules-based applications while containing costs and increasing agility.
Technologies for Security and Compliance by Ken McIntyre, ErcotTheAnfieldGroup
This document summarizes a presentation given by Ken McIntyre, the Director of Standards and Protocol Compliance at the Electric Reliability Council of Texas (ERCOT). The presentation discusses ERCOT's regulatory challenges in ensuring reliability and compliance with various standards. It also outlines ERCOT's compliance initiatives, including consolidating compliance data, implementing a governance, risk, and compliance software system to automate activities, and developing a "risk engine" to assess risk and prioritize compliance efforts.
SEC Updates its Electronic Recordkeeping Rule for the First Time in 25 YearsShield
Twenty-four years ago, in 1997, the Securities & Exchange Commission (SEC) established a rule governing electronic recordkeeping. Watch the presentation or visit the blog at https://bit.ly/3mT4dqF
The document discusses developing a service-oriented architecture (SOA) strategy using a software-as-a-service (SaaS) platform. It outlines key elements of an effective SOA strategy including abstracting functionality as loosely coupled services and leveraging both internal and external legacy systems. It also discusses advantages of a web-delivered SOA platform like cost savings and shared infrastructure.
Risk & Compliances Officers globally are putting 1000’s of man-hours to collate global regulatory intelligence relevant to their business and even more time to track changes without dedicated research team experienced in global regulatory framework; thus increasing costs of compliance and risks of non compliance.
Lawrbit Global regulatory intelligence is created and continuously updated with regulatory changes through collaborative input of 1000s of legal experts from 100+ law firm across 80+ countries. Lawrbit provides a centralized repository of all required regulatory know how that can be commonly accessed by Compliance Officers, Functional Users, Management, Board of Directors and Auditors.
Nahum Marcus has over 20 years of experience in infrastructure management, compliance, and project management within the financial industry. He has managed technology operations budgets of $5 million and capital budgets of $3.5 million. His experience includes analyzing market data needs, implementing regulatory requirements, transaction monitoring, and training. He holds a BS in Computer Technology, BA in Computer Science, and MA in Jewish Studies.
Analyzing Your Government Contract Cybersecurity ComplianceRobert E Jones
Govology
Left Brain Professionals Inc.
The FAR and DAR Councils issued new cybersecurity rules for government contractors. The FAR rule, effective in June 2016, affects all government contractors and lists 15 items "a prudent business person would employ…even if not covered by this rule." The DFARS rule, 252.204-7012 "Safeguarding Covered Defense Information and Cyber Incident Reporting" requires compliance with NIST (SP) 800-171 R1, a more robust guideline, by December 31, 2017. While no audit plan or third-party system approval process exists for the FAR and DFARS rules, contractors imply compliance by signing and accepting contracts with these clauses. More importantly, these clauses exist in current contracts so your compliance is already implied. Join me for a conversation about the unique cybersecurity requirements for government and defense contractors as we discuss CUI, the audit and survey process, the costs of non-compliance, and compliance strategies.
For an organization to function efficiently it is important to have security controls to ensure the protection of confidentiality, integrity and availability of information and systems. Compliance is the process of ensuring all systems in an organization met a set of predefined specific rules.
In this article we will address the need for compliance automation and how SecPod’s Saner provides enterprises the ability to automate compliance while minimizing time spent on non-compliant state.
Leveraging compliance to raise the bar on securityMike Lemire
This document discusses how leveraging compliance with security frameworks and industry standards can help raise security standards within an organization. It provides an overview of common compliance objectives for different industries, such as SSAE16 for financial services, PCI DSS for payment processing, and HIPAA for healthcare. Achieving these compliance standards demonstrates high security controls to customers and can enable business expansion. The document recommends mapping controls across compliance frameworks to identify gaps and continuously improving processes to address those gaps through roadmaps, governance, and audits in order to achieve compliance objectives and business benefits.
Businesses involved in mergers and acquisitions must exercise due di.docxdewhirstichabod
Businesses involved in mergers and acquisitions must exercise due diligence in ensuring that the technology environment of the future organization is robust and adequately protects their information assets and intellectual property.. Such an effort requires time and open sharing to understand the physical locations, computing environment, and any gaps to address. Lack of information sharing can lead to a problematic systems integration and hamper the building of a cohesive enterprise security posture for the merged organization.
Often the urgency of companies undergoing a merger and acquisition (M&A) impedes comprehensive due diligence, especially in cybersecurity. This creates greater challenges for the cybersecurity engineering architect, who typically leads the cybersecurity assessment effort and creates the roadmap for the new enterprise security solution for the future organization. However, the business interest and urgency in completing the merger can also represent an opportunity for CISOs to leverage additional resources and executive attention on strategic security matters.
In this project, you will create a report on system security issues during an M&A. The details of your report, which will also include an executive briefing and summary, can be found in the final step of the project.
There are nine steps to the project. The project as a whole should take two weeks to complete. Begin with the workplace scenario and then continue to Step 1.
Deliverable
Cybersecurity for a Successful Acquisition, Slides to Support Executive Briefing
Step 1: Conduct a Policy Gap Analysis
As you begin Step 1 of your system security report on cybersecurity for mergers and acquisitions, keep in mind that the networks of companies going through an M&A can be subject to cyberattack. As you work through this step and the others, keep these questions in mind:
Are companies going through an M&A prone to more attacks or more focused attacks?
If so, what is the appropriate course of action?
Should the M&A activities be kept confidential?
Now, look at the existing security policies in regard to the acquisition of the media streaming company. You have to explain to the executives that before any systems are integrated, their security policies will need to be reviewed.
Conduct a policy gap analysis to ensure the target company's security policies follow relevant industry standards as well as local, state, and national laws and regulations. In other words, you need to make sure the new company will not inherit any statutory or regulatory noncompliance from either of the two original companies. This step would also identify what, if any, laws and regulations the target company is subject to. If those are different from the laws and regulations the acquiring company is subject to, then this document should answer the following questions:
How would you identify the differences?
How would you learn about the relevant laws and regulations?
How would .
Taming the regulatory tiger with jwg and smartlogicAnn Kelly
From CEOs to board members to operational managers, regulatory compliance is an ongoing concern. In a rapidly changing marketplace where complex regulations come from multiple regulatory bodies, the consequences of non-compliance can be costly to the enterprise in time, money and damage to their reputation.
JWG, a London think tank, has created RegDelta – a state-of-the-art regulatory change management platform - that allows individual stakeholders to quickly understand the impact of regulations and maintain a single source of truth for their regulatory obligations.
Hear Elliot Burgess, Head of Product and Client Services at JWG and Paul Gunstone, Sales Director at Smartlogic discuss the challenges organizations face identifying and complying with relevant regulations, JWG’s approach to taming the regulatory tiger with semantics and see a demo of the JWG RegDelta platform.
Riliance is an advanced risk and compliance management system that allows firms to automate compliance tasks, streamline risk management, and provide instant visibility into compliance issues. It features powerful task management, effortless integration with existing systems, robust security, and intuitive interfaces. The system is designed by legal compliance professionals to take a centralized, top-down approach to risk oversight through customizable modules that cover areas like complaints, referrals, audits, and reporting. Firms can transform their compliance culture with Riliance's tools and guidance.
This document discusses SOC 1 and SOC 2 reporting for third party processors. It explains that user organizations are increasingly requiring third party processors to obtain assurance reports on controls related to processes and information security. SOC 1 reports provide assurance on controls related to financial reporting, while SOC 2 reports provide assurance on controls related to security, availability, processing integrity, confidentiality, and privacy. The document outlines revisions made in 2014 to the SOC 2 standard to increase clarity, eliminate redundancy, and update criteria for changing technology and business environments.
Similar to SEC Regulation SCI and Automation Review Policy Compliance (20)
Evolution of U.S. Financial Markets 2000-2014 John Rapa
The US financial markets have evolved significantly from 2000 to 2014. Exchanges consolidated through mergers and acquisitions, leading to a duopoly of NYSE and NASDAQ. Electronic trading replaced much of the open-outcry model. New entrants like dark pools and alternative trading systems fragmented the markets. Regulation increased with rules like Reg NMS and Dodd-Frank. Technological advances enabled high-frequency and algorithmic trading. Clearing houses also consolidated while taking on more product types like OTC derivatives. The financial crisis of 2008 further accelerated these trends of consolidation, electronic trading, and increased regulation of the US markets.
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SEC Regulation SCI and Automation Review Policy Compliance
1. TELLEFSEN AND COMPANY, L.L.C.
SEC Regulation SCI
and
Automation Review Policy Compliance
March 2013
Proprietary and Confidential
2. Proposed SEC Regulation SCI -
Systems Compliance and Integrity
Recently, the SEC proposed new rules to require certain key
market participants to have comprehensive policies and
procedures in place surrounding their technology.
The proposed Regulation SCI (“Systems Compliance and
Integrity”) would replace the current voluntary compliance
program with rules whose violation of which may be the subject to
enforcement actions.
SROs, certain alternative trading systems (ATS), plan processors,
and exempt clearing agencies would be required to design,
develop, test, maintain, and survey their mission-critical systems.
The proposed rules would require them to ensure that their core
technology met certain standards, to conduct business continuity
testing, and to provide certain notifications in the event of systems
disruptions and other events.
Tellefsen and Company, L.L.C.
Proprietary and Confidential
3. Proposed SEC Regulation SCI -Systems Compliance and Integrity
The new requirements will present challenges to compliance
professionals, especially the Chief Compliance Officer, who is
responsible for the creation and enforcement of reasonable
supervisory procedures related to the implementation and
maintenance of applicable technology and the software that
operates it.
While these responsibilities are far from a routine compliance skill
set, Reg. SCI is a continuation of a recent trend by the SEC of
placing increased responsibility on compliance with respect to
policies and procedures for implementing and maintaining various
types of technology.
For the past two decades, SROs have followed a voluntary set of
principles articulated in the SEC’s Automation Review Policy and
participated in what is known as the ARP Inspection Program.
Tellefsen and Company, L.L.C.
Proprietary and Confidential
4. Proposed SEC Regulation SCI -Systems Compliance and Integrity
Recent technical glitches in the securities markets including those
that arose during the initial public offerings of Facebook and BATS
Global Markets as well as the Knight Capital trading incident have
illustrated that investors can be at risk when technology fails, and
confidence in the markets can falter.
The market closures following Hurricane Sandy also highlighted
the importance of having a robust market technology
infrastructure.
These events and discussions have helped shape the development
of the rulemaking being proposed.
Tellefsen and Company, L.L.C.
Proprietary and Confidential
5. Regulation SCI - Designed to Ensure:
Core technology of national securities exchanges, significant
alternative trading systems, clearing agencies, and plan processors
meets certain standards.
These entities conduct business continuity testing with their
members or participants.
They provide certain notifications regarding systems disruptions
and other types of systems issues.
The probability of technology problems is reduced, and key entities
are well-positioned to take appropriate, corrective action if
problems do occur.
Tellefsen and Company, L.L.C.
Proprietary and Confidential
6. Regulation SCI – Applicability
The proposed rule would apply to “SCI entities” such as:
– Self-regulatory organizations (the registered national securities
exchanges, registered clearing agencies, FINRA, and MSRB).
– Alternative trading systems that exceed specified volume thresholds
(SCI ATS).
– Disseminators of market data under certain National Market Systems
plans (“plan processors”).
– Certain clearing agencies exempt from SEC registration.
It would apply primarily to the systems of SCI entities that are core
to the functioning of the securities markets, such as those that
directly support trading, clearance and settlement, order routing,
market data, regulation, or surveillance.
Tellefsen and Company, L.L.C.
Proprietary and Confidential
7. SCI Entities Will Be Required To:
Establish policies and procedures relating to the capacity, integrity,
resiliency and security of its technology systems.
Establish policies and procedures to ensure its systems operate in
the manner intended, including in compliance with relevant federal
securities laws and rules
Take timely corrective action in response to systems disruptions,
systems compliance issues and systems intrusions.
Notify and provide the SEC with detailed information when such
systems issues occur as well as when there are material changes in
its systems. Written notices would be filed electronically on new
Form SCI.
Inform its members or participants about certain systems problems
and provide information about the systems and market participants
affected by the problem and the progress of corrective action.
Tellefsen and Company, L.L.C.
Proprietary and Confidential
8. SCI Entities Will be Required To (Cont’d)…
Conduct an annual review of its compliance with Regulation SCI, and
submit a report of the annual review to its senior management and
the SEC.
Designate certain individuals or firms to participate in the testing of
its business continuity and disaster recovery plans at least once
annually, and coordinate such testing with other entities on an
industry- or sector-wide basis.
Provide SEC staff with access to its systems to assess compliance
with Regulation SCI.
Tellefsen and Company, L.L.C.
Proprietary and Confidential
9. Tellefsen and Company –
Automation Review Expertise
Tellefsen and Company has a core competency and depth of
experience in assisting exchanges, clearing houses and ATS in
complying with regulatory guidelines and developing regulatory
requirement filings for exchange designation status.
We have conducted numerous ARP reviews for clients in the last
several years, including ATS, clearing houses and exchanges.
We have counseled and guided our clients through the preparation
for designation reviews and inspections by the CFTC, FINRA and
the SEC.
Our mission-critical systems expertise includes trading systems,
market data dissemination, clearing, risk management and market
surveillance components.
Tellefsen and Company, L.L.C.
Proprietary and Confidential
10. Our Market Structure and
Automation Review Expertise
Experience on prior client assignments has included the
development of ARP documentation and procedures for trading and
operations management, including:
– Business Impact Analysis
– Business Continuity Management
– Capacity Planning
– Systems Development Methodology
– Acceptance Testing
– Configuration and Release Management
– Network Management
– Problem Management/Problem Tracking
– Information and Physical Security
– Failover, Stress and Capacity Testing
Tellefsen and Company, L.L.C.
Proprietary and Confidential
11. Our Market Structure and
Automation Review Expertise
The development of systems failover and fall back testing strategies
and plans are a core competency of our firm, as is systems quality
assurance and acceptance testing.
We have provided independent test oversight and test results
attestation for various exchanges, clearing houses and numerous
market participants.
Tellefsen and Company, L.L.C.
Proprietary and Confidential
12. For More Information, Contact
Tellefsen and Company, L.LC.
John Rapa
1-212 809 3800
JJR@Tellefsen.com
12