The compliance platform will provide modular functionality that lets clients cover their particular compliance needs. The three available solutions are Anti-Money Laundering (AML), Broker/Employee Compliance and Trading Compliance. This new ADP service is the only service bureau or ASP offering of the Mantas Behavior Detection Platform available today.
Each solution comes with a comprehensive set of scenarios developed by Mantas for detecting inappropriate or suspicious behavior patterns or actions. The scenarios can be customized to meet the needs of an individual client.
The Anti-Money Laundering solution detects "behaviors of interest" such as transactions involving high-risk geographies or entities, detecting anomalies or changes in account behavior and rapid movement of funds. The solution also detects relationships between accounts or among other entities, along with a variety of other behaviors consistent with money laundering activities.
The Broker Compliance solution detects behaviors consistent with front-running, trading a security on a restricted list or watch list, violation of short-term trading restrictions, trading on insider information, and other potentially illicit, unethical or illegal activities.
The Trading Compliance solution has a comprehensive set of scenarios that address illegal trading in equities, options, fixed income and other markets. The solution monitors trading and market making activities with respect to regulatory compliance and best execution. Examples include: marking the close, marking the open, parking to conceal position, price manipulation and spoofing.
The platform automatically alerts compliance personnel to potential violations and provides a flexible, browser-based interface for managing alerts. These are automatically routed to the appropriate individual or group for investigation, tracking each alert from initiation through investigation to closure. A complete audit trail of each suspicious incident is automatically produced and archived.
The compliance platform enables ADP clients to manage the risk associated with failure to meet regulatory requirements such as USA PATRIOT Act, SEC and NASD regulations. These risks can range from very large financial penalties imposed by the regulatory bodies to significant damage to a firm's reputation. The platform also includes many scenarios specifically designed for Mutual Fund compliance such as detection of late trading, market timing and breakpoint monitoring. The flexibility of the platform allows for deployment of new scenarios to meet ever-changing regulatory requirements in a timely manner. Since the platform is offered as part of ADP's BPS service bureau, the client avoids wasting the time, money and effort required to stay current with such changes.
Simon Moss, CEO of Mantas, said, "We are delighted that ADP saw Mantas as the clear provider for its customer base. Thousands of brokerage, banking, and fund management firms who might otherwise be faced with substantial new investments now have a most economical and immediate access to Mantas' world leading compliance technology. More importantly, we believe this partnership will help the market as a whole since our partnership with ADP extends to these firms the best practices in compliance and integrity protection that is currently enjoyed by the large majority of Wall Street."
Marianne Brown, Senior Vice President and General Manager of ADP's Brokerage Processing Services said, "We are proud to be able to offer our clients the world's premier compliance solution through this partnership with Mantas. This is yet another example of ADP's continuing commitment to maintain our service bureau's position as the leading provider of brokerage services on a global basis. It underscores our continuing drive to provide ever greater levels of World Class service and competitive business value to our clients."