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Maintain Compliance 24/7

Pre-trade compliance is critical for regulated investment firms. Trades executed intraday must be added to a start of day (SOD) portfolio and prescribed limits need to be checked on the combined SOD portfolio + trades. Trades that trigger breaches on a compliant SOD portfolio, alerts and remediation plans must be surfaced to the executing trader. 

Yet many institutional firms still rely on manual Excel spreadsheets, custom code with limited transparency, and stretched operational teams to manage compliance checks, risk calculations, reporting, and other repetitive tasks.

This approach is time-consuming, error-prone, and inefficient, leading to increased operational burden and reduced productivity. Worse, traditional Order Management Systems (OMS) often struggle to handle complex derivatives in portfolios, lack alerts and configurable reports, and cannot integrate with needed tools or platforms, creating gaps in functionality and limiting automation possibilities.

But not with Everysk.

With Everysk intelligent automation, money managers enjoy a robust, end-to-end compliance engine that monitors trades at all times – even throughout the current day’s trading session.

Intelligent Automation for Wealth, Pre-Trade Compliance Automation

Comprehensive Review

Pre-Trade Compliance Automation Workflow

Everysk pre-trade compliance workflows can be calibrated for low latency (real time responses using a webhook event that listens to a staging server at the OEMS) or not (from an uploaded trade blotter). Explore the various configurations of pre-trade analysis in greater detail below.

Ingest start of day (SOD) portfolios

Portfolios may be ingested in multiple formats including:  

Receiving a CSV with position information via sFTP: Everysk sets up a server that listens to file received event. The CSV should contain as many rows as securities in the portfolio and the columns are properties that are required to parse the security into a symbology that Everysk understands. Columns might contain underlying, expiration date, strike and premium for an equity option, and others. 

Receiving a XML with position information via API: Everysk can parse XML and retrieve the positions in the portfolio (in many countries like Brazil, XML is the de facto way to transfer portfolio information)

Parse the file and generate a portfolio entity inside your account in Everysk

The difference of a parsed portfolio and the raw securities in the ingested file are:

  • Positions are properly parsed to Everysk’s symbology
  • A net asset value is computed
  • A date and base currency are assigned to the portfolio

With this structure, users can now easily retrieve historical portfolios.

Ingest intraday trades

Depending on the required latency, Everysk may listen to real time events where trades are being staged at an OEMS server. Alternatively, trades are sent all at once as a blotter via CSV (similar to the SOD portfolio). 

Allocate trades to portfolios

In general, executing traders will trade for the firm and not individual PMs. In order to test for pre-trade compliance, firm-wide trades are partitioned and allocated to the proper portfolios. Many types of allocation rules can be followed: preset percentage amounts, proportionality to the size of each portfolio, etc. Everysk enables a flexible metadata to direct trades to their respective portfolios.

Calculate various portfolio metrics that will be required in the compliance tests with the resulting portfolio: SOD+trades

If compliance checks require a limitation on the VaR of the portfolio, risk is computed. Likewise, if compliance checks have a limitation on portfolio duration, that measure must be computed.

Everysk’s integrated multi-asset calculation engines have been designed exclusively for these and other requirements specific to the capital markets industry.

Store the results of the calculations

Next, Everysk produces a granular datastore with all the required calculations.

Within the datastore, each row represents a security in the portfolio and each column includes a calculated property that will be used by the compliance checks.

Generally, Everysk stores only security level calculations that are additive, such as component risk and asset blended sensitivities. Thus, if a compliance test were to establish a limit on risk (or exposure) in the energy sector, for example, it would be trivial for us to aggregate the individual contribution from securities. 

Perform data explorations to check against limits

Everysk allows a transparent and flexible design of data explorations, consisting of:

  • Filters: eliminate or isolate only parts of the portfolio (all fixed income for example)
  • Aggregations: add the property at the aggregation level
  • Transformations: perform average, sum, z-score and dozens of available transformations.

Everysk embeds a complete Business Intelligence layer with its automations. Each data exploration can be named and compared to a limit. Limits can be preset, or dynamically bound to the portfolios at run time. 

Distribution of results and remediation plans

Everysk distributes granular reports containing a description of the breaches, the trades generating those breaches and the maximum trade size required to maintain compliance. Reports are sent via Teams, Slack or email. Embedded buttons within reports allow immediate single-click reaction to information.

Staging

After being vetted by Everysk and approved by the client, trades are automatically staged at an OEMS via API or a file upload. 

A dynamic platform for a dynamic industry

Achieving compliance is impressive, but maintaining it in all circumstances is just as critical.

Fortunately, the Everysk platform is as flexible as it is powerful. Modifying criteria according to regulatory regime changes requires minutes, rather than months, allowing capital market managers to maintain compliance and save money while avoiding breaches and fines.

In the event of an audit, every automation run and results are logged for review. 

Before Everysk

  • Manual processes that erode operational profits
  • Brittle custom code prone to bugs and breakdown
  • Potential for intraday compliance breaches

After Everysk

  • 24/7 compliance, including intraday
  • Workflows tailored to your operations
  • Secure platform for maximum performance

Ready to learn why advisors choose Everysk for wealth management automation & analytics?

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