Broker-Dealer Compliance for Cost-Effective CAT Reporting
From regulatory pressure to confident compliance - a leading broker-dealer faced SEC Rule 613 CAT reporting requirements. Learn how Sparq conducted a comprehensive CAT reporting build vs. buy analysis, guiding the client to a cost-effective broker-dealer compliance solution that reduced risk, saved money, and ensured timely reporting.
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- AI
Challenge: Navigating CAT Reporting Under SEC Rule 613
A leading broker-dealer needed to comply with SEC Rule 613 for cash equities trading but faced uncertainty about the best approach. Should they build a custom CAT reporting solution or purchase a vendor product? With tight regulatory deadlines, cost concerns, and operational efficiency at stake, they needed an expert partner to evaluate every angle and minimize compliance risk.
Solution: Comprehensive Build vs. Buy Assessment
Sparq delivered a strategic, side-by-side analysis to empower an informed decision:
- Evaluated Custom Build Requirements: Assessed development effort, maintenance needs, and long-term scalability.
- Reviewed Vendor Solutions: Compared reliability, cost, and integration capabilities of third-party CAT tools.
- Cost-Benefit Analysis: Balanced risk reduction, compliance timelines, and total cost of ownership.
- Tailored Recommendation: Matched the optimal solution to the broker-dealer’s specific trading and operational environment.
Results: Risk Reduction, Cost Savings, Timely Compliance
The broker-dealer adopted our recommendation to purchase a proven vendor solution, achieving:
- Reduced Risk: Leveraged a scalable product with a strong compliance track record.
- Lower Costs: Avoided significant upfront build expenses and ongoing maintenance overhead.
- On-Time Compliance: Met SEC deadlines without diverting resources from critical trading operations.
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