The Dodd-Frank Act makes the financial system more accountable and transparent, preventing financial institutions from becoming too big to fail, and stopping risky behavior. Not only US based financial institutions must comply with the Dodd-Frank Act, but also many non-US based Fis trading within the US. The Dodd-Frank Act specifically describes the communication channels that need to be recorded, as well as retention and retrieval rules.
§ 23.202 Daily trading records:
Swap dealers and major swap participants shall make and keep daily trading records of all swaps they execute. Records should include all information necessary to conduct a trade reconstruction. Including:
- Pre-execution information – All voice, digital or other method of communication that lead to an execution.
- Execution trade information – all the trade information
- Post execution trade information – all relevant details.
This means that banks and financial institutions must keep all communications (including solicitations, bids, offers, instructions, trading etc.) prior to a swap, correlate them and add the execution and post-executioninformation to reconstruct the complete trade.
Shield FC”s Solution: The Shield FC record keeping platform connects to the organization·s communication channels. IT ensures all relevant conversations and operational information are correlated for Compliance Officers to reconstruct the swap frompre- to post-execution in a simple and productive way.
§ 1.31 Books and records; keeping and inspection.
The Dodd-Frank Act requires that all records must be kept in their original form for 5 years. Furthermore, records must be preserved exclusively in a non-re writable, non-erasable format. The quality and accuracy of the storage media recording process must also be verified automatically.it should be WORM (Write Once Read Many) and managed audit trail.
The Shield FC system ensures that all original files from all types of communication systems, are kept with the file quality controlled automatically, encrypted and protected from changes and deletion.
The record keeping platform consists of a modular, flexible and unified end-to-end solut ion for long-term data archiving. Original files are fully secured, encrypted and conform to WORM.Backed up by is a fully managed audit trail.