ACA Technology Announces Version 3.5 of ACA’s Decryptex Surveillance Technology

March 20, 2019

Key features include new and enhanced algorithms, vendor integrations for expert network or meeting calendar information, reporting enhancements, and user interface improvements.

ACA Technology Solutions, a division of ACA Compliance Group and a leading provider of regulatory technology, data management, and investment technology solutions, announced the version 3.5 release of ACA’s Decryptex® trade surveillance solution.

Key features include:

New Algorithms

The following new algorithms are now available:

  • Trade Errors – Identifies trading patterns wherein a trade is reversed at a loss (configurable) in a short period of time.
     
  • Parking – Takes a systematic approach to identifying potential pre-arranged trading scenarios and can be configured to look for reverse parking.
     
  • Portfolio Pumping – Looks for significant trades (as percent of ADV) in the days before the month-end and subsequent reversal of most of those trades in the days after the month-end. The period-end price must result in a return (compared to the pre-trade price) that is advantageous to a pre-existing position in the same or a derivative of the traded security.
     
  • Trade Commission – Uncovers abnormally high commission rates (per share or points) by account, broker, and/or trader as well as abnormally large dispersion of trade commission paid compared to other accounts, brokers, or traders.

Algorithm Enhancements

Version 3.5 includes the following algorithm enhancements:

  • Ability to identify price favoritism in the context of a specific asset class
  • MNPI handling of non-trade transactions and security expiration
  • Ability to exclude IPO/ secondary trades for best execution analysis
  • Handling of false positives due to portfolio events (new or liquidated portfolios)

Vendor Integrations

Decryptex now supports standardized third-party connectors for expert network or meeting calendar information. Please contact Michael Lehman for details on supported vendors.

Reporting Enhancements

The following reporting enhancements are included:

  • The ability to create customizable and exportable styled reports
  • Out-of-the-box reports for allocations and commission analysis

User Interface Improvements

Enhancements have been made to the user interface to help clients do their jobs more easily and efficiently, including: 

  • Improved login process – The application login process is now simplified and more robust, including new user email verification, password reset on first login, and forgot my password functionality.
     
  • Data Browser – The new Data Browser screen provides view-only access to underlying raw data used by Decryptex.
     
  • Parameter information – In Research Lab, users can now see the algorithm parameters used to flag a particular item of interest.
     
  • Contextual helper text – Hyperlinks are available that allow users to view additional information related to securities, employees, funds, and brokers.

“ACA continues to focus on expanding Decryptex's surveillance coverage and aligning with regulators' priorities to help our clients meet their regulatory obligations,” said Nikolay Kojuharov, Partner at ACA Technology Solutions. “We also continue to make improvements that help our clients do their jobs more efficiently, particularly through added third-party vendors to streamline integrations, user interface enhancements, and added reporting functionality.”

Related Insights

ACA's team of RegTech professionals has developed the following resources to help navigate the ever-evolving regulatory landscape and how RegTech can help:

Go to the Blog

About Decryptex

ACA's Decryptex surveillance technology provides in-depth trade surveillance to help identify items of interest and non-compliant trading and investment activity. The solution includes a case management tool that can store emails, reports, and research related to each investigation.

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About ACA Technology Solutions

ACA Technology Solutions, a division of ACA Compliance Group, provides investment management, data management, and regulatory technology solutions and consulting services. Our clients include leading hedge fund, private equity fund, endowment fund, and pension fund managers, investment managers, asset managers, and outsourced CIOs. Our team of financial technologists has real-world industry experience and understands the dynamic needs of today’s investment managers and compliance teams.

About ACA Compliance Group

ACA Compliance Group (“ACA”) is a leading provider of governance, risk, and compliance advisory services and technology solutions. We partner with our clients to help them mitigate the regulatory, operational, and reputational risks associated with their business functions. Our clients include leading investment advisers, private fund managers, commodity trading advisors, investment companies, broker-dealers, and domestic and international banks. ACA is based in New York City and has offices in London, Hong Kong, Malta, and other U.S. cities.

For More Information

For more information, contact Michael Lehman at mlehman@acats.com or by phone at +1 646-735-1020.

For media inquiries, please contact Krissy Kennedy at +1 (857) 214-1740.

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