Peace of mind is the most valuable asset your business can give. Walter’s experience with a terrifying audit and a well-prepared accountant taught him that peace of mind when it comes to regulatory compliance is of utmost importance to any business.
I had just finished college and had started my own business. Since I was filing as a 1099, having a good accountant was very important, so I received a recommendation for a very very good accountant. As a 1099, I always broke even when it was time to pay taxes, but sometimes I was fortunate enough to even get a refund.
The IRS, of course, thought my accountant was a little too good. I got the dreaded letter telling me that I was being audited. My heart rate instantly doubled. I had heard all the nightmares of people who now owed so much money in fines and penalties that they would spend the rest of their life paying back the IRS.
So I took my obligatory trip to the federal building in beautiful Newark, NJ. Through the barely working metal detector, and up the elevator to a dimly lit hallway to the office where my judgment was handed down. All in all, this was not a pleasant experience. The IRS employee was a grumpy woman who sneered over her glasses at me and began to rattle off to me all the items deemed “suspicious” on my tax return. It was a long list.
I left that office feeling very overwhelmed and hopeless. I decided to take a trip to my accountant’s office. After showing him the details of my audit, his extremely calm reaction was quite surprising. This was exactly the opposite of my reaction. He matter of factly showed me how he could easily verify and reconcile each item in question. Talk about a swing of emotions for me! I went from panic to relief in just seconds! The thoroughness and accuracy he demonstrated gave me great and immediate peace of mind.
This is the same feeling that firms get when they use Corvil. Today, there are so many different regulations and they are constantly changing -- so much so that companies aren’t sure if what they put into place will actually meet the requirements. Corvil acts as that great accountant so that companies don’t panic when the regulators come knocking. Just think of the anguish experienced by Knight Capital during the flash crash of 2012.
New regulatory frameworks, such as MIFID II in Europe, have seriously increased the requirements for consolidated reporting across asset classes. This has produced an overwhelming need for a precision, time-synchronized data collection tool. The good accountant and record keeper, so to speak, has to be deployed on-demand to give firms any type of peace of mind.
This shifting regulatory landscape includes RegSCI and the Consolidated Order Trail. These regulations mean much more strict real-time reporting and data retention requirements. This increases the compliance demands on many different asset classes. Market participants are being asked to give accurate reconstructions of trades, on-demand, in order to prove compliance. Of course, the distributed nature of markets makes this very difficult. Factor in the microsecond response time of trading systems, and this makes many firms just want to pack up and leave the business, feeling as overwhelmed as I felt leaving that IRS building all those years ago.
The way that Corvil addresses these challenges is by providing microsecond visibility, hardware time stamping and accurate data acquisition for high performance trading environments. Corvil is able to capture all network data, independent of trading systems, and turn it into business metrics that can be used by different teams such as client reporting, market access, network infrastructure and trade support. The platform can be used as a single data source to feed risk and reconciliation systems and can archive storage for compliance. The multi-layered approach of the architecture allows users to consolidate infrastructure and business level visibility on a single scalable and economically efficient platform.
So companies don’t have to worry about the anxiety of regulatory oversight. Clients have the peace of mind in knowing that Corvil will help them to meet any global regulatory challenges. It’s like having the best accountant in the world when you are staring down the daunting prospect of an audit -- you know you are well-prepared to answer any question on anything!