- SteelEye and LeapXpert have joined forces to help financial firms combat the risk associated with the use of unauthorised communications channels.
Last year, for example, $2 billion in eComms fines were handed out to Wall Street firms for failures in preventing employees from communicating on channels that were not being monitored for compliance.
Capturing and overseeing communications is a critical way of detecting market abuse like insider trading, unlawful information sharing, or other forms of manipulation.
In the UK, the Financial Conduct Authority and in Europe, it is the European Securities and Market Association have oversight.
Previously, data capture and surveillance solutions for messaging applications like WhatsApp did not exist, and firms opted to ban their use. H
However, as evidenced by the ongoing communications crackdown, clients and employees often speak via these channels regardless of the bans imposed.
Under the partnership, eComms data captured by LeapXpert from platforms – including WhatsApp, SMS, Voice, iMessage, WeChat, Telegram, Signal, and LINE – will flow automatically into SteelEye for compliance record keeping and surveillance.
“There is mounting pressure on financial firms to improve how they capture, archive, and monitor regulated communications across their organisations,” says SteelEye’s CEO, Matt Smith.
He adds, “Together with LeapXpert, we provide a sophisticated, scalable, and efficient solution – so that firms can empower their employees to communicate across a wide range of channels.”
Avi Pardo, Co-Founder & CRO of LeapXpert, says, “SteelEye’s distinguished platform offers a futureproofed and scalable solution for financial firms looking to strengthen their communications but also trade surveillance programmes.
This integration ties into our strategy of partnering with complementary solutions, enabling us to provide an end-to-end solution and rapidly expand our business.”
©Markets Media Europe 2023
