The Dodd-Frank act ("The Act") was implemented in 2013 and brings the most significant changes to financial regulation in the United States since the regulatory reform that followed the Great Depression, representing a significant change in the American financial regulatory environment affecting all Federal financial regulatory agencies and almost every aspect of the nation's financial services industry. Many new rules relating to recordkeeping and risk-management for swap dealers, major swap participants, security-based swap dealers, and security based major swap participants ("swap entities"). Mainly for US banks but also for banks outside US dealing with US banks.

Regulatory Authorities

CFTC - Commodities & Futures Trading Commission

SEC - U.S. Securities and Exchange Commission

FINRA - Financial Industry Regulatory Authority

Relevant articles for Recording and Surveillance

Section 764 SEA Section 15F(g)(1) - Each registered security-based swap dealer and major security-based swap participant shall maintain daily trading records of all trade activities including includes voice, email IM and Chat.

Section 764 SEA Section 15F(g)(4) Reconstruction - Compliance departments upon request need to be able to produce requested data, then be able to find all relevant communications to be able to put in comprehensive timeline within short timeframe.

SEC DFA 951-954 - Firms need to have insight into their system to ensure that they are functioning properly because any loss of voice calls, or the failure voice calls may result in further action.

CFTC Regulation 23.2 Preventing Fraud - Firms must record voice, email, IM and chat and have surveillance programs in place to ensure that their traders are not using or communicating practices and news that is deemed to be manipulative. Firms must provide evidence that shows review and resolutions of potential risks.

Recommendations

With Dodd-Frank firms must ensure recording of all telephone conversations of regulated employees in front-office (trading floor), back- and middle office, and mobile devices if they are used for trading activities. This can be done with NICE Trading Recording (NTR).

With Dodd-Frank firms must provide evidence they can detect behavior that may have relevance in terms of market abuse and this evidence must be readily available to regulatory investigation if requested. This can be done for transactions with Markets Surveillance and for communications with Communications Surveillance.

With Dodd-Frank firms must be able to reconstruct a trade from all the constituent parts of the deal as and when requested. This can be done with SURVEIL-X Holistic Surveillance.