Red Box Recorders Helps Financial Institutions Meet Increasing Regulations

The requirement for financial institutions to keep a secure and accurate record of communications, including telephone conversations, is greater than ever as are the penalties for not doing so. Compliance officers face addressing a growing number of complex regulations around the world, knowing that failure to comply can result in a shut down of operations. These regulations are designed to improve operational transparency and mitigate risk and are being driven by key regulatory bodies such as the Commodity Futures Trading Commission (CFTC), SOX in Japan, US Securities Exchange Commission (SEC), Financial Conduct Authority (FCA) and Basel.

Over the next few years, there will be new regulations in the form of MiFID II, REMIT, MAD/MAR and EMIR (the European equivalent of Dodd Frank) that will make the need to monitor financial transactions even more important. In short, banks and financial institutions now face the dual challenge of remaining profitable whilst dealing with increased regulatory pressure if they are to ensure the trust of the wider financial community and public as a whole.

Red Box Recorders has been working with the world’s leading financial organisations for over 20 years providing voice and data recording which enables regulatory compliance, supports critical business processes and aids cleaner markets by deterring abuse. Red Box Quantify Recording Suite provides vital information for internal compliance and disclosure officers whose job it is to investigate any problems within the bank, but also for external regulators who may also call on a bank to make details of certain financial transactions available.  

It can record and store all communications from multiple sources, whether dealerboards, fixed line, voicemail and mobile/cell phones across a wide range of platforms on trading floors in investment banks and brokerages. This means that all elements of the trading communication can be captured using the Red Box compliance suite, ensuring fast dispute resolution if required.

Quantify Search and Replay functionality allows recordings to be searched quickly and accurately using meta data. It is invaluable in investigations, dispute resolution and for validating transactions or call information. For extended search capability, Quantify AudioSearch provides intelligent search of spoken words and phrases. It can search recordings 200 times faster than real time, analysing an hour’s content in as little as one minute, and up to 20,000 hours in less than a day.

AudioSearch is best used in conjunction with Red Box Quantify Event Reconstruct which enables the reconstruction of single events and trades from multiple communication sources.It enables you to create a shared workspace where compliance/audit teams can place relevant calls and see them on a visual timeline. These can then be played back individually or simultaneously offering an excellent platform by which to gather and decipher trade information.It manages large volumes of recordings and synchronises up to 50 outputs at once. Quantify CallSafe then allows the information to be locked down for further investigation outside a retention period.

Will Hopkins Global Sales Director at Red Box Recorders said: “The most significant piece of legislation recently to affect the financial markets is the Dodd-Frank Act, which has the most extensive requirements yet for call recording and record keeping. This doesn’t just apply to US- based financial institutions but also non-US-based institutions that trade with US. Now we are seeing other G20 organisations also putting their own legislation into place that is equally as stringent. What is clear is that if you trade in OTC derivatives, you will be under growing pressure to implement voice and data recording for compliance purposes.”

“Our Quantify solution can help companies become compliant by storing recordings securely and to a standard that guarantees they are admissible in a court of law. Resilience is key and our unique frame-based recording, which ensures that all active channels are recorded in one file, ensures minimal file loss and no fragmentation of stored data. In the event that a system should fail, the deployment of a Secondary recorder ensures the highest levels of resilience with minimal duplication of data to reduce storage costs.”