Audit Support & Interimsmanagement

More frequent vendor audits lead to higher risks because of potential fines

Over the last years market data vendors and exchanges were facing a constant decline in market data usage and therefore in revenue regarding terminals and applications. On the one hand, the financial markets crisis led to a shrinking number of employees and users, on the other hand the increase in automatization with regards to applications as well as the switch of many tasks from human beings to systems led to a reduction in data and terminal usage. Under these circumstances Market Data Vendors and Exchanges try to compensate for this revenue loss by introducing new and – for themselves – more favorable contract and license models. On top of that, they eliminate grey areas of data usage and finish existing standstill agreements or waivers. In order to impose their new rules they check their compliance more often and more thoroughly in the form of audits which are combined with on-site investigations. This means an enormous increase of the risk to be obliged to pay a fine due to non-compliant data usage.

The challenges for market data managers have considerably increased under these circumstances:

• Understanding of new contract and license models and their consequences
• Assessment of risks and evaluation of options:
  1. Implementation of new models, if possible also backwards: communication of new rules towards users and application owners as well as surveillance of execution of these
  2. Elimination of non-compliant data usage. Forming a decision with Management and Business how to go on and what to implement accordingly
  3. Decision to run the risk of a non-compliant data usage with the risk of a major fine only to be taken by Management, if necessary creation of adequate accruals
• Support with handling and processing the increasing number of at the same time more extensive audits (remote, on-site) by exchanges, brokers and market data vendors (e.g. Bloomberg, Thomson Reuters)
• Support with negotiations with auditors and support with implementation of audit findings

Minimise your risk by booking the professional audit support of Be Shaping the Future GmbH:

Be GmbH Services

• Audit-Support
  • Consulting before vendor-audit:
    Risk assessment with regards to non-compliant data usage by matching utilisation of data vs. clients contracts; Support with filling in questionnaires of auditor
  • Consulting during vendor-audit:
    Backing the audit process; Support with interviews with applications owners, with applications demos and audit documentation
  • Consulting after vendor-audit:
    Support with negotiations with auditor regarding fines as well as with negotiations on business/license level; Support with implementation of audit findings regarding business as well as technical requirements
• Interim Management
  • Replacement of Market Data Manager during absences, no longer initial training necessary because of existing market data know-how and experience
  • Support of Market Data Manager in times of high strain (e.g. with bigger projects)

Your Benefit

• Audit-Support: Risk minimisation and support of the financial institution with audits via professional consulting during the complete audit period
• Interim Management: Insuring a strategic market data management by efficient personnel during longer absences or periods of higher strain

Be GmbH Success Factors regarding Interim Management & Audit Support

• Profound market & reference data know-how
• Broad knowledge of vendors and their contract and license models
• Experience with supporting and processing audits and implementing audit findings