Capital Markets firms can now benefit from a new continuous compliance service for algorithm risk management, thanks to a partnership between new-generation GRC solution provider OXIAL and financial markets specialist GreySpark.

The collaboration means that buy-side and sell-side institutions can stay on top of ever-changing and growing global regulation and compliance. The new supervised compliance programme is a managed service, that involves an initial policy and process driven due diligence on the client’s algorithm trading activity by GreySpark consultants, followed by the implementation of an Algorithm Risk Management (ARM) maturity framework. This includes the automation of algorithm business processes and workflow, risk control management, audit, real time performance cockpits, and more, ensuring continuous compliance for algorithm risk mitigation in capital markets.

Commodity market trading is now mostly automated, and while there was initially little regulation around automated trading, the 2008 financial crisis changed that, and there are now strict regulations with significant penalties if a business does not comply. Many firms have relied on Excel or similar manual methods to manage compliance and regulation requirements across different territories and entities.

GreySpark wanted to provide clients with a vastly improved way of doing this. “This new offering allows us to deliver our clients a better way to provide proof of compliance and to be in a much greater position when being audited,” said Jon Batty, executive director at GreySpark. “OXIAL’s automated platform is very powerful. Not only is it a far more effective way of addressing compliance—continuous and ever-evolving—but it also saves valuable time and resource spent on manual management.”