In a move to bolster messaging governance and compliance within the financial sector, IPC has partnered with LeapXpert to provide improved solutions for regulated financial businesses. As the industry increasingly relies on digital messaging channels alongside traditional telephony, managing effective surveillance and meeting regulatory obligations like data recordkeeping has become a significant challenge.
LeapXpert addresses this issue by creating a federated messaging environment that enables seamless, cross-platform communication among users and applications. Offering a centralized, interoperable communication platform accessed through a Single Professional Identity—one contact number—the solution streamlines messaging functionality while ensuring compliance with recordkeeping requirements from regulators such as the Securities and Exchange Commission (SEC), Commodity Futures and Trading Commission (CFTC), European Securities Markets Authority (ESMA) , and Financial Conduct Authority (FCA).The frequency and size of enforcement actions taken by the SEC this year highlight the regulatory risk firms face for failures to monitor ‘off-channel’ communications. In February, 15 firms were charged with record keeping failures and fines of $81 million collectively, along with additional conditions including cease and desist, censure and the appointment of an independent consultant.
In August, another 26 firms were similarly charged and faced collective penalties of more than $390 million and most recently in September another 12 firms faced collective penalties of $81 million bringing the total for the year to close to half a billion dollars, all with similar additional conditions of settlement. In a number of cases, firms that self-reported faced reduced financial penalties and in once case no financial penalty at all..
With over 50 years in trading communications systems, IPC continues to focus on improving the trading experience through technological innovation and strategic partnerships. Integrating LeapXpert’s solutions within IPC’s Unigy, Trader Voice, Unified Communications, and mobile capture solutions offers a comprehensive approach to messaging governance in the financial industry.
James Tonks, SVP Partner Development at IPC, says that the collaboration signifies a significant step toward the future of compliant communication. “The use of messaging channels is accelerating,” he says. “Federated messaging is the next major leap in the digital enterprise communication revolution.”
Echoing this sentiment, Avi Pardo, Co-founder and CBO of LeapXpert, emphasizes the importance of seamless communication in financial markets. “Our partnership with IPC ensures that financial institutions can navigate the complexities of off-channel communication, staying compliant while optimizing their operations,” he says.
“The LeapXpert solution is live now and customers can immediately procure it through IPC, with the IPC support wrapper,” Tonks says.
LeapXpert’s Communications Platform supports various chat features, including one-on-one and group chats across multiple messaging channels like WhatsApp, iMessage, WeChat, SMS, Telegram, Signal, and LINE. This allows clients to use their preferred or authorized channels, while traders and employees communicate through a single platform and number, enhancing accessibility and efficiency.
The platform’s API integration and client/employee identification features ensure that both parties are certain of each other’s identity, enhancing trust and security. Advanced governance capabilities—including data leakage prevention, information barriers, and anti-virus and malware services—enable firms to monitor client conversations more effectively, safeguard sensitive information, and protect assets from security threats and data leaks.
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