Scaled an alternative trading system to become one of the largest in the U.S.
Objective
Help an alternative trading system (ATS) build a technology-based compliance platform to support its unique and disruptive business model.
Background
The client came to InnReg looking to develop a sophisticated set of compliance processes and workflows to support a groundbreaking peer-to-peer ATS for retail investors.
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Challenges
An ATS and its broker dealer operator are typically subject to enhanced regulatory scrutiny by their functional regulators, primarily FINRA and the SEC. The many unique components of the ATS’s business model, such as the near-total reliance on operational processes that were based on proprietary algorithms, compounded the frequency and depth of regulatory interactions. While the broker dealer and ATS had a compliance program in place, the client wanted to upgrade its workflows and processes to optimize its compliance strategy, execute on it efficiently, and satisfy regulatory expectations.
InnReg's Solution
Devised and implemented a comprehensive set of compliance processes to accommodate the complexity of the ATS business model.
Leveraged fintech compliance expertise and experience in regulatory relations to satisfy regulators’ requirements and expectations.
Successfully demonstrated the efficacy of the new compliance processes to three separate regulatory agencies.
Advised on process design to ensure compliance with all regulatory guidelines, as well as scalability to accommodate the high volumes of users and transactions in the ATS.
Ongoing delivery of a fully managed, outsourced regulatory compliance solution, including having a licensed professional serve as the Chief Compliance Officer of the broker dealer and ATS.
Client Results
The ATS has been able to facilitate a high-volume of retail transactions in a scalable, compliant manner.
The ATS has become one of the largest in the US in volume of transactions.
The client has begun expansion in foreign markets.
