The Financial and Regulatory Surveillance module reviews the requirements of members based on the risk associated with each clearing position as well as assesses each member’s internal controls, risk-management policies, and back-office operations.
Financial Surveillance Module
A sophisticated financial surveillance software has several powerful features:
Reporting. Clearing Members may be asked to submit monthly investments reports. Clearing Members may be asked to provide financial statements and submit reports (daily or weekly) as directed by Clearing.
Notification. Clearing Members are required to report any failure to meet their obligations.
Inspection. Generally, each Clearing Member agree to be subject to a financial and operational review upon request. The reviews are tailored to focus on the specific risks of the Clearing Member.