Companies operating in the financial sector are required by law to monitor and report on their employees’ personal trading activity. By using Tradelog, a web-based compliance tool developed by Euronext Securities Oslo, companies can automate the entire trading activity governance process, saving valuable time and resources, as DNB Markets has experienced.
The administrative aspect of monitoring employees’ personal trading activity can be time-consuming for financial institutions, a fact to which Hanne Leirbukt Pedersen, Chief Compliance Officer at DNB Markets, can attest. “It was an area that had become increasingly work intensive for DNB Markets in recent years,” she states. Part of the reason for this growing workload was the company’s largely manual application and approval process. “Prior to using Tradelog, we used a homegrown solution with a Microsoft Excel-based application form and a Microsoft Access-based follow-up form. This solution required a great deal of manual work, which is why we were looking for a system that could automate many of these manual tasks.”
Automation helps create a more efficient process
With Tradelog, DNB Markets has automated the entire trade monitoring process, which starts when an employee begins working in the company. “All DNB Markets’ employees are required to register their securities holdings in Tradelog when they start working for us,” Hanne Leirbukt Pedersen explains. When employees want to trade in certain financial instruments, they apply via Tradelog. The application and approval process are also handled in the system. Once an employee completes a trade, their account at Euronext Securities Oslo is automatically updated at settlement date to reflect their new holdings. All employees, regardless of their location or employment relationship, use the system. They can even manually register shares, which is necessary for shares in non-Norwegian companies and for employees who don’t have an account with Euronext Securities Oslo.
TradeLog simplifies compliance tasks
DNB Markets’ Compliance function also uses Tradelog to evaluate employee applications for any potential conflicts of interest before approving a trade, and to follow up on any lock-in period violations. Hanne Leirbukt Pedersen also points to Tradelog’s reporting features as an added benefit for the department. “Tradelog makes it easier for our Compliance team to get an overview of the holdings of a single employee or group of employees, such as our research analysts. It’s also simpler for us to run reports to get an overview of all applications and registrations for a specific time period.”
Remote access benefits employees
The benefits of using Tradelog aren’t limited to the compliance side of DNB Markets’ organisation. “The system was well-received amongst employees,” comments Hanne Leirbukt Pedersen. “That’s primarily because employees feel the new system is simpler and more user-friendly than our previous one.” Tradelog also makes it easier for employees to access information about their own portfolio and trades, and to stay compliant even when they’re away from the office. “In the old solution, employees had to be logged on to DNB’s network in order to submit an application and report trades. In TradeLog, they can do these things from any network, including from a mobile phone. This makes it easier for employees to submit their applications and register trades, even when they’re on holiday or leave,” she explains.
Open collaboration a key success factor
According to Hanne Leirbukt Pedersen, the open dialogue DNB Markets has had with Euronext Securities Oslo about the system has been a contributing factor to the company’s successful system implementation. “Euronext Securities Oslo has improved the system several times during the time we’ve used it, in response to our input on improvements and new functionality. They’re always available and respond quickly if we have any questions or concerns about Tradelog.”
To find out more about Tradelog and other compliance and regulatory services, please contact //www.euronextvps.no/dnb-markets-uses-tradelog-to-automate-its-employee-trade-monitoring-process/cwiklund@euronext.com ">Carl Johan Wiklund.
Fact box: About Tradelog
Tradelog is a web-based compliance tool and case management system offered by Euronext. Companies can use it to handle employees’ applications, approvals and inquiries related to their personal trading activity. It can be tailored to a company’s specific environment and incorporates all of the company’s regulations, internal policies and procedures governing employee trading activity. Read more about Tradelog here.