Smart Derivatives Compliance Engine
Keywords:
Event-driven orchestrations, enterprise derivatives, regulatory compliance, data lineage, provenance.Abstract
Enterprise use of derivatives products presents multiple challenges. Primary risk management and regulatory compliance processes require complex orchestration in terms of services, data, and human interactions. The event-driven nature of financial ecosystems allows for the definition of a coherent, intelligent event-driven financial orchestration. It combines event and change detection patterns from various sources with patterns of data lineage, provenance, and enterprise governance for integration of AI and machine learning components with well-defined schemata for additional data processing, alerts, and notifications.
Enterprise derivatives ecosystems incorporate several risk assessment and monitoring processes. Intelligent event-driven orchestration automates key financial processes by coordinating normal lifecycle activities and controls of negotiable financial contracts. Integration of supervised and unsupervised machine learning components support key goals. Primary trading and clearing lifecycle negotiations can be partly or fully automated, with other major risks such as settlement and market faking incidents being mitigated. A transversal event-driven style allows for the detection and transparent management of cross-sectional compliance elements such as data privacy localization, sanctions screening, and time-zone or currency mismatches.
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References
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