Today marks the launch of FundApps’ third service: Position Limits.
This new post-trade service automatically monitors positions against exchange-imposed limits, to reduce regulatory risk and cut the cost of compliance.
FundApps ’ Position Limits service simplifies a process where even the smallest mistake can bring about severe sanctions. In 2016, a single case of improper position limit reporting led to a USD $1 million fine, with similar actions resulting in lengthy trading bans. With MiFID II coming into force in January 2018 and the CFTC finalizing an expanded limits regime, the obscurity and complexity behind position limits has led to high demand for an automated service from compliance teams.
“Compliance professionals want an automated way to monitor position limits, as correctly interpreting rules and aggregating positions is time-consuming and extremely difficult.” said Aliya Ladhani, Product Manager. “Position limits are a complex regulatory requirement and we’ve heard of firms breaching limits they didn’t even know existed. Our new service takes the opacity out of position limits, helping compliance professionals to do more in less time.”
The new service gathers limit data from multiple sources on a daily basis giving clients an up-to-date picture of the regulatory environment. Users can monitor their positions against limits set by exchanges, and track the number of days until the limit comes into effect. Calculating the date a spot limit comes into effect is one of the biggest challenges faced by compliance teams: FundApps’ Position Limits makes it virtually effortless.
“FundApps' mission is to automate heavily manual, time-consuming and repetitive tasks. In doing so we reduce key person risk, eliminate fat-finger errors and make compliance less of an art and more of a science.” said Andrew Patrick White, FundApps CEO.
FundApps are already in partnership with one of their existing clients, an American asset manager with over USD $150 billion in AuM, as initial users to test the service.
FundApps are an international RegTech company dedicated to making compliance simple for financial institutions. Their services are used to monitor over USD $2.5 trillion in assets every day, by some of the world’s largest asset managers, pension funds and hedge funds.