Global Agriculture Trading Firm Meets Tight Regulatory Deadlines with K3
- Met regulatory deadlines with limited staff and expense
- Deployed flexible technology which delivered future changes with ease
- Enabled analysts to easily oversee 15 minute reporting obligations
Faced with tight regulatory deadlines, a Fortune 500 agriculture and trading firm needed to assemble a central store of trade data from multiple sources, apply a complex set of rules against them, then convert data to a new standard before submitting to regulators. Highly regulated due to their size, they have a 15 minute reporting deadline for trades as well as strict record keeping standards.
Every transaction needed to be interpreted according to a set of rules and then converted (ETL) to a standard reporting format, irrespective of the originating system. The firm knew what needed to be done but how was not quite as clear, especially in the face of technical staff bandwidth constraints. While bespoke solutions could have been delivered by numerous consultancies, the firm sought a solution with low maintenance that could be operated by teams who understood the meaning of trade data and the regulations. Thus alleviating the need to involve technical staff for ongoing changes.
The firm elected to self-implement K3 with guidance from BroadPeak staff. A team was assembled with 1 developer, 1 business analyst, 1 regulatory advisor (part-time) and 1 project manager (part-time) along with a BroadPeak analyst. K3 managed the entire workflow from gathering raw internal trades, filtering them through regulatory rules, submitting them to repositories in real-time and finally bringing back success and error responses for each message. This fulfilled both operational workflows as well as compliance record-keeping requirements.
By driving the initiative internally, the firm was assured their staff would be able to manage the process post go-live and keep costs down. Selecting standard off-the-shelf software minimized project delivery risk and assured the firm of support and new features in the future.
With less staff and expense than comparable projects, the firm was able to successfully build out trade reporting capabilities.
After 18 months of operation, the internal central trade store needed to be decommissioned for technical reasons; it was only used initially to meet tight deadlines. With 3 people over a 2 months effort, the setup was reconfigured, tested, and pushed to production. We estimate that the firm avoided $655,000 in development costs and the equivalent of 1.5 full-time employees for the ongoing maintenance of this integration. The initial decision to use a standard product continues to pay off.