CATALYTICS: ADVANCED INSIGHTS FOR CAT

Providing free, customizable analytics to CAT Operations teams.

Overview

CAT Operations teams face significant challenges: the regulation is new and evolving, and reporting systems are immature. The sheer volume of data makes a conventional analysis tool like Microsoft Excel inadequate.

Risk Focus is proud to offer CATalytics: Advanced Insights for CAT. This completely free, customizable analytics solution allows for the robust data analysis of big data and can also trigger corrective actions, join with external data sources, and be extended to leverage AWS’s rich artificial-intelligence (AI) and machine-learning (ML) capabilities.

CATalytics supplements our additional CAT consulting services, which include Regulatory Health Checks and targeted service offerings.

CATalytics Features 

Transparency 
and Analysis 

Multi-Data Source Integration 

Action

Technical Architecture

The Dashboard provides the following functionality out of the box to support the transparency and resolution of CAT-related activity: 

  • User and team ability to review CAT-related submissions and activity (e.g., breakdown of total trades and files submitted, errors over time grouped by error type, etc.) 
  • Self-service functionality for Operations teams to analyze and resolve problems without having to resort to ad-hoc IT help 
  • Transparency for record-level submissions and timeliness without the need to generate bespoke reporting or queries 
All data points are dynamic, changing the data visuals upon selection. Custom visualizations can include top error codes, top event types, a rejection bar chart, historical trends for transaction volume and rejection volume and a further drill down via a visual donut and traditional pie charts.

Specific examples of needed transparency include:  

  • Visualizing aspects of trade volume vs. error volume 
  • Drilling down to specific issues via stackable filters to identify use cases and understand issues at hand 
  • Providing detailed trade information to investigate and resolve issues. 
Dynamic selections are equally available and exist on the bar chart and other data points.

The Dashboard facilitates: 

  • Customization (e.g., inclusion of specific fields, IMIDs, etc.) 
  • Creation of trigger alerts for activity monitoring 
  • Threshold for volume and error counts 
  • Export functionality 
With dynamic drill downs, user gets error details that reflect their selected options.

CAT requires reporters to submit critical data for each transaction, which, in many instances, is unrelated to the actual activity at hand (see below for examples).

This poses challenges for investigation and resolution. To investigate, the end user must pull numerous submission records for multiple events as well as understand the underlying issue at hand (e.g., to understand why the Route event [MEOR] is breaking, one  may need to review a New Order event [MENO]). 

Examples of critical data submitted with each transaction:

Internal linkages (trades handled internally between desks must be connected by an identical ID); orders routed from one industry member to another must be linked via a Routed Order ID; orders routed to the exchange must have consistent customer reference data. 

Users get detailed, exportable views of trade information as it relates to each error and transactional data.

The Dashboard enables concrete action to either resolve an issue at hand, flag it to another team, raise it for further investigation, or escalate it to stakeholders. 

Communicate with the Financial Industry Regulatory Authority (FINRA): 

  • Pull relevant data from FINRA via AWS PrivateLink 
  • Correct applicable errors via point-and-click 
  • Review ‘named’ linkage errors (where another broker-dealer alleges an error) 

Create Service Tickets – Enable the creation of JIRAs, ServiceNow tickets, or other issue-tracking tickets when researching and investigating issues. 

  • Requires IT service ticket 
  • Requires trade amendment 
  • Requires a confirmation from a 3rd party (e.g., another broker-dealer) 

Enable Red-Amber-Green (RAG) Alerts –Trigger automatic emails to various teams when established thresholds are crossed. In addition to errors, RAG alerts can be set for multiple scenarios including volume thresholds, missed submission timelines, and missed error corrections within T+3 threshold. 

  • Alert BAU teams and CC interested parties when about to cross from green to amber 
  • Alert CAT Principal and interested parties when crossing to amber 
  • Alert Senior Manager and interested parties when approaching red 

CATalytics is a fully serverless solution deployed on the Amazon Web Services (AWS) Cloud.

The architecture is both scalable and extremely inexpensive to operate. The deployment utilizes Amazon S3 in a data-lake capacity, AWS Glue as a data-processing engine, AWS Athena as a query engine, and Amazon QuickSight for business intelligence and visualization. In addition, AWS CloudWatch captures systems and operational information and displays it in the same integrated dashboard.

The cloud deployment of CATalytics provides the following benefits:

  • Simple integration of your CAT environment with cloud services 
  • Cloud analytics and business-intelligence benefits 
  • Serverless architecture with no infrastructure to manage 
  • A pay-as-you-go model for all components 
  • Security features including data protection, network protection, logging, auditing, etc.

Get in touch If you’d like a demo or are ready to start using CATalytics for free

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