SteelEye, the compliance technology and data analytics firm, has announced the release of its pioneering Auto-Trade Reconstruction technology, which reduces the time it takes for a firm to reconstruct a trade from days to seconds.

Under MiFID II, MAR, Dodd-Frank and other global regulations, authorised firms can be asked by the regulator to reproduce the records that relate to a trade or client order – typically regulators require this information within 72 hours.

This is a major burden for firms, which need to bring together all the transaction/order details, conversations, emails, meeting minutes and more to reconstruct the scenario. However, with datasets spread across siloed platforms, meeting the deadline presents a significant challenge for most firms.

By leveraging artificial intelligence, machine learning, and advanced data relationships all within a single platform, SteelEye makes trade reconstructions effortless – reducing the risk of regulatory scrutiny for firms and personal liability for senior managers. The SteelEye platform seamlessly captures all of a firm's structured and unstructured data across any asset-class, communication type and system – unifying it under a single lens, where it is cleansed, normalised, indexed and made instantly retrievable.

SteelEye's Auto Trade Reconstruction thereafter looks at any given scenario or piece of data and simultaneously brings together all information that is deemed to be relevant, such as related communications or transactions as well as independent pricing. By firms accepting or rejecting these suggestions the system learns as over time, improving the reconstruction of each scenario.

This means that firms can immediately investigate a trade or order and automatically see all the related phone calls, meetings, WhatsApp messages, as well as finding out information about the trade/order itself. At the click of a button, these records can be added to an existing case or used to create a new case, and thereafter easily exported. SteelEye even brings in external market data and news to enable clients to monitor suspicious trading volumes, using data from sources such as Twitter feeds.

"The requirement to reconstruct all the conditions surrounding a trade or order requires firms to identify, locate and bring together a wide range of information, quickly. With many firms professing that such a request would take them over two weeks to complete, this has been an area bringing a lot of worry and stress to compliance teams," said Matt Storey, Chief Product Officer at SteelEye. "With our auto-trade reconstruction this is now completely automated and effortless."