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How to Control Access to Single Dealer Portals and Other Market Services

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Against the backdrop of rapid adoption of electronic trading across cash asset classes that aren’t typically traded on exchanges, financial institutions are struggling to control access to external trading portals and platforms, and other market services. This phenomenon is presenting a particular challenge in fixed income and foreign exchange markets, where single dealer portals that allow banks to trade assets on behalf of their clients are growing in popularity and use.

But herein lies a problem – control over access to these portals has become an issue due to practices such as password sharing, and lax security around trading portals that can leave firms vulnerable to potential market abuse, vendor penalties, security breaches and regulatory censure. In particular, firms risk non-compliance with the SEC’s wide ranging Systems Compliance & Integrity (SCI) regulation, which was drafted in recognition of the potential security issues of using trading portals.

A recent white paper authored by A-Team Group and sponsored by West Highland Support Services, Getting Control of Access to Key Market Services, considers how firms are using single dealer portals and identifies shortfalls in practices that could potentially lead to breaches of Regulation SCI.

ews the need to put security and compliance capabilities around access to market services, including trading portals. This entails establishing controls over access to these portals and other key market services that are based on centralised control systems capable of secure storage and entitlement to service accounts and passwords. With these systems in place, the white paper outlines the benefits of establishing best practices around access control.

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