Getting Control of Access to Key Market Services

Use of single dealer portals that allow banks to trade assets on behalf of their clients is growing rapidly, particularly among firms in the fixed income and foreign exchange markets in particular.

But while trading portals offer great benefits in terms of broader market reach and enhanced client functionality, they bring risks too.

Firms are struggling to control internal access to these portals, mostly due to practices like password-sharing. Indeed, lax security around trading portals – and other key services like market data – can leave firms vulnerable to potential market abuse, vendor penalties, security breaches and regulatory censure.

Furthermore, lack of controls over access to bank-operated trading portals and services is emerging as a major challenge for financial institutions seeking to comply with the SEC’s wide-ranging Systems Compliance & Integrity regulation (Regulation SCI), and the growing number of rules globally that are looking to address operational risk.

This white paper will:

• Look at how firms are accessing single dealer portals and other key market services
• Identify shortfalls in practices that could potentially lead to market abuse, breaches of the SEC’s Regulation SCI or reputational damage
• Highlight the benefits of establishing best practices around robust controls on access to trading portals, market data and other services
• Offer guidance on measures your firm can take to compliance with Regulation SCI and other rules on operational resilience