As firms struggle to meet regulatory expectations while expanding their global footprint, the role of the Control Room in managing deals and handling Material Non-Public Information (MNPI) is increasing in complexity, Activities span across multiple jurisdictions and lines of business, and directly impact global operations, such as imposing restrictions and establishing information barriers to manage conflicts of interest, and prevent potential or perceived market abuse.

Our Solution – Matrix Deal Management (MDM)

The MDM solution was created due to a lack of an effective DMS solution that covers all the business compliance aspects of financial institutions. The solution offers a dedicated, dynamic portal where Compliance Officers can systematically address deal, and list management challenges more efficiently and cost-effectively.

MDM is built using 4 building blocks:

MDM: Operational Portal – Deal Registration Walkthrough 

Deal registration – Collecting all the required deal information is crucial to identify material non-public information and establishing information barriers in a timely manner. This information can be delivered from a variety of sources such as CRM (e.g., Salesforce) or entered manually via the portal. The following screen demonstrates how the information is gathered.

Deal team – The MDM portal allows users to manage the deal team, identify roles (such as Deal Team Captain), and set access permissions (as shown in the screen below).

Deal companies – Correct identification of the various parties to a deal is critical to establish information barriers and monitor potential breaches. The screen below demonstrates how related companies can be added or removed on the fly, with a clear designation of their role in the transaction and their relationship to the bank.

Insider List – One of the challenges in deal management is the correct identification of all insiders related to the deal in accordance with the Market Abuse Regulation (MAR). The MDM portal allows Insider List management with various types of insiders, such as deal team members, Over the Wall individuals, and permanent insiders (Compliance, IT, Business Selection and Conflicts Committee members), as seen below.

Restricted list – Each publicly-traded company that is material to deal must be monitored to prevent MNPI leakage. Upon the deal’s public announcement, the company must apply restrictions on trading and research activities, as mandated by regulatory bodies or the firm’s internal policies. The screen below allows the Compliance Officer to determine which related products will be added to the institution’s restricted list, and specify which activities are restricted. Similar rules can be configured for watch list, research list, quiet list, or others.

Once the deal details have been entered, a work item is created (as shown below). This work item enables the Compliance Officer to review and monitor the deal’s lifecycle and establish the appropriate information barriers.

Matrix-IFS has vast experience in designing deal management solutions based on market best practices and customized to the client’s business requirements. The following screen is a snapshot of the workflow created for a tier-1 European bank. To read the full use case, click the link below

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