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Fonetic Upgrades Automatic Trade Reconstruction Technology

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Fonetic has extended its automatic trade reconstruction (ATR) solution to give compliance and surveillance officers more features and functionality to support the investigation of trades, detection of fraud and the ability to export an ATR timeline as a data file to a regulator. The company suggests the solution is well suited to the trade reconstruction requirements of Markets in Financial Directives II (MiFID II) and Dodd-Frank, and names BBVA and Santander as global users of the solution for comms surveillance and compliance with these regulations.

Fonetic’s ATR technology automatically processes and links all trading data with its corresponding communications, helping compliance and surveillance officers accurately detect and report fraud, manage alerts around potential fraudulent behaviour, quickly and efficiently conduct investigations, and rapidly resolve disputed trades and mismatches.

Fonetic ATR V2 builds an upgraded user layer on top of the technology that provides a faster investigation process through improved usability and a collaborative environment that allows multiple investigating officers to share comments and notes; new models to help detect more fraud cases and reduce false positives; the ability to perform ad hoc or user defined proximity searches; and the ability to quickly and easily export a full ATR timeline as a data file and send it to a regulator on request.

Juan Manuel Soto, CEO and founder of Fonetic, says: “Regulators are taking a tough line on fraud. Banks need to react to systemic compliance weaknesses and put in systems that provide better control. This is not easy, often because chats, voice and email communications are recorded and stored in siloes and are not integrated. Fonetic ATR links every deal to its comms as soon as it is booked, reducing the cost of trade reconstruction, increasing productivity and saving time.”

As well as bringing together elements including front, middle and back-office data, social media, data analytics, voice biometrics and unstructured data in a multi-language solution that can decode trader behaviour, Fonetic ATR V2 goes beyond who’s talking to who and how often, and builds up a detailed relational picture over time that allows the analysis of all types of communication and early identification of context anomalies, including fraud, false positives or fat finger mismatched trades.

Fonetics ATR V2 is initially available as enterprise software, with a cloud-based option due soon.

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