System for automated checking of transactions
for market conformity

Fact Sheet RiskLine-M
Info letter on checking transactions for market conformity

Checking transactions for market conformity requires current market data and an understanding of the review procedures to be applied. RiskLine-M (M stands for market conformity) checks transactions automatically as far as possible based on the type of instrument and the transaction data.

The following verification methods are supported by the system:

  • Checking the transaction price against an
    alternative market price
  • Checking the transaction price against a fair
    value calculated by the system
  • Checking the transaction price against a fair
    value calculated by another system

RiskLine-M categorizes all transactions according to type and volume. This allows different verification methods and tolerance limits to be applied for each transaction type and category. The criteria for the market conformity check can thus be adapted to the characteristics of the transactions. The definition of the methods and tolerance limits to be applied is done by the user in a manner compliant with auditing standards.

Transactions for which the market conformity cannot be confirmed by the system are shown to the user in an exception list. In this way, errors in recording transactions and resulting losses can be identified as quickly as possible and appropriate countermeasures can be introduced.

RiskLine-M can obtain the current quotes needed for the check via the quote distribution and validation system RiskLine-P (refer to the information for this product). The transactions to be checked are taken directly from the trading systems (such as Kondor+) of the financial services provider into RiskLine-M.

The use of RiskLine-M offers the following benefits to financial services providers:

  • Extensive automation of market conformity checking
  • Assurance of timely checks that comply with auditing standards
  • Use of configurable limits
  • Improvement of checking quality by focusing user attention on transactions that call for action
  • Increased transparency for the checking process
  • The check is entirely paperless.

Continue RiskLine-P