COMPLIANCE ASSURANCE

& Skype for Business Recording Integration

Are you ready

for the increasing

Communication

Compliancedemands?

Greater assurance

required around

communicationsHigher priorities for

compliance

New

communication

methods that need

recording

More regulations

around

communications

Did I capture everything I should

have?

Do outside callers know they

are being recorded?

Can I find the calls I am asked

for quickly?

How do I know the system is

working even though I don’t

have any alarms?

How do I prove the correct

people are in the system and

successfully recording?

How do I export the calls

you are asked for quickly?

Are all calls archived

successfully with the correct

retention?

Are the correct people

recorded?

Trading Regulations

have changed the

recording needs

4

More Modalities More Conversations More People

More Evidence More InvestigationsMore Data

Reconciliation

• Dodd-Frank is fully in force

since August 2013

• Record and archive all electronic communications such as voice, emails, instant messages, communication files and 3rd party messages

• Communications to be captured, tagged, retained, searchable and available to the regulator within 72 hours from the request

• Make sure systems are running- Firms need to have insight into their system to ensure that they are functioning properly

• Transaction Reconstruction: Compliance departments upon request need to be able to find requested data, then be able to find all relevant communications

• Prevent Fraudulent Practices: Now that firms captured voice, email, IM and chat for their traders, they must have some form of monitoring and surveillance in place

Strict Regulations Around Communications Are on the Rise

Dodd-Frank

• MAR is in force since

July 2016

• Record all communications of ‘Direct Market Participants’ (Brokers and Dealers)

• Be able to identify intent related to a event and actions behind the event which requires surveillance that highlights possible fraudulent behavior

• To identify an entity how may facilitate the dissemination of false or misleading information

• Be able to monitor trading based on Material Non-Public Information(MNPI)

• Be able to take handling instructions communicated from clients and in case of best executions investigations compare the instruction to the activities of the trades

• Benchmark Submitters- Those firms that have a submitter to establish a rate now fall under increased supervision. Monitoring their communications with other submitters, within the same bank, or others, is now under major focus to ensure and prevent possible collusion

MAR

• MiFID II will come into force in

January 2018

• Monitor all Voice Communications - internal & external, inbound & outbound, pre- & post trade, front- & back-office, mobile phones

• All conversation must be retained for at least 5 years

• Notification of recording: parties outside the frim must be notified all communication will be recorded

• Monitor all Electronic Communications -Emails, Chats (e.g. Bloomberg, Thomson Reuters, Yahoo), etc.

• Monitor Market abuse: firms must provide evidence they can detect behavior around market abuse

MiFID II

• Code of conduct was updated

May 2016

• Compromising Confidential Information-Firm need to demonstrate how they protect Confidential Information and promote effective communication that supports a robust, fair, open, liquid and appropriately transparent FX Market.

• Complete and Accurate Data- This is fundamental to support effective surveillance. Automated algorithms should be documented and are subject to design and effectiveness reviews. Each communication alert should be dispositioned to the extent that it can be independently reviewed and audited

• Measure and Monitor- firms are expected to promote and maintain a robust control and compliance environment to effectively identify, measure, monitor, manage, and report on the risks associated with their engagement in the FX Market.

FX Codes of

conduct

Recent News

6

Source: https://blogs.thomsonreuters.com/financial-risk/risk-management-compliance/mifid-iis-trickle-down-effect-may-catch-non-eu-firms-unprepared/

MiFID II transparency obligations will

require firms to capture and record a

wide range of data at certain points in a

transaction. This could impact non-EU

firms.

Collaboration technology

will create new questions

Do I know all of the information that was shared?

How do I know who is talking to who?

How do I reconstruct the scenario that consists of voice, video, and mobile?

How will I capture the new ways employees are

communicating?

NICE offers ONE solution to capture ALL communications

8

Turrets

PBX

NICE Trading

Recording

UC

Mobile

Phones

Easily Expand Existing Recording Infrastructure with UC

9

NTR

Core Server

NTR

Core Server

Fusion

Fusion Server

SatelliteSatellite Satellite SatelliteSatellite

Central User

Management

Turrets PBX Mobile Phones Skype for

Business

Voice

UC

Central Search

& Download

Central System

Management

Central

Monitoring

Sentinel

Add Skype for Business Add other Communication Types

Capturing Skype for Business Voice - Overview

10

1. The Front End Server sets the Recording Target

(extension to be recorded)

2. The NICE Proxy is introduced between the

Front End Server and the NICE Recording

3. The NICE Recording Satellite is selected for the recording

4. The IP address of the Recording Satellite send to the

Front End Servers as the Recorder Audio Destination

5. The Audio is forked from the Proxy to the Satellite

Grow existing Recording Infrastructure as you add Communication Types

11

VideoVoice is supported today

Video added H1 2018

Instant MessageAdded H2 2018

VoiceFully Supported today

Ethical Walls

Added H2 2018

Screen SharingAdded H2 2018

Whiteboard, QA, PollAdded H1 2018

File transfer

Added H2 2018NICE Recording

• Multiple devices (turret, desk, mobile)

• Pre- and post trade conversations

• Back- and middle office

• On-site or remote working

• All required people and content is captured

• All regulated users are in the systems

• Reconcile regulated users are actually being captured

• Systems are fully operational

• Central retrieval from multiple locations

• Fast search for any type of communication

• Bulk download for conversations under investigation

12

More than Just Trading Floor Recording is Required

Capture all communications

Prove all communications are captured and stored

Retrieve all communications quickly

NICE COMPASS: Complete Compliance Assurance

13

Capture Prove

Retrieve

com·passˈkəmpəs/

noun

An instrument that shows where

you are and the direction ahead

• Drives efficiency & automation

• Proves compliance policies

• Introduces controls for assurance

• Improves investigation processes

• Built to grow with your business

Capture all communications

• Use existing NTR environments deployed today

• Record any communications system used in front- and back-office

• Expand with Skype for Business recording if required

• Add recording of Mobile devices to the same recording system

• 9 out of 10 global banks use NTR today

COMPASS – Capture

14

Front & Back-officeIncluding Mobile Phones

Omni-ChannelReady for new technology

PlatformSupporting latest technology

2N

Provide evidence that you are compliant

• New compliance auditing documents all steps within the recording process

• New dashboards visualize real-time actions, trends and exceptions

• New compliance reporting outputs statistics, information and reconciliation of the process

• New assurance tests automatically check the end to end process

COMPASS – Prove

15

AssuranceProve you are compliant

SecureAlways protected

RetentionRobust retention and legal hold

TLS v1.2

Retrieve all communications easy and fast

• Central replay all of content

• Centrally manage your compliance controls

• Manage all your users and access

• Review your automated morning check

• Access and review all your compliance reports

COMPASS – Retrieve

16

Central SearchOne Portal for all retrievals

Fast SearchAdvanced search capabilities

Bulk DownloadQuick download for investigations

for Complete Compliance Assurance

17

Automation

Retrieve Calls

Centralized Portal

Reports Dashboard

NICE Trading Recording (NTR)

Turrets PBX Mobile devicesUnified Communications

Media Extraction System Assurance

Retention Management Recording Check & System HealthBulk Download

Centralized Portal

18

Challenges

• How to ensure all systems are correctly configured

• How to quickly access all content

• How to prove the correct systems are in place

• How to know everything is working correctly

Solution

NICE COMPASS enables central system and user

management allowing customers to manage there

recorders and user population globally from one

portal:

• Central Recording & User Management

• Central Search & Replay

• Central Retention Management

• User detail exporting and re-certification

• Central Downloads

• Central Reporting…and more

Centralized

Downloads

Centralized

Reporting

Centralized User Admin for Entire

Regional Recording EstateSimplified Management

Recording Check & System Health

19

Challenges

• How to ensure the recording system is operating

correctly and ready to record

• Complex interop between the communications

platform, network, recorder and archive

infrastructure

• How to replace the manually recording checks

performed today

Solution

NICE COMPASS offers

• Test clients strategically placed in the

infrastructure which can make test calls to each

other

• Check successful recording and archiving after

test call is finished

• Trigger alarms in case of arising problems

• Show status of automated test runs

• Display widgets to easily understand status

Traffic Light Indicator

Click for Test Detail AnalysisLast Tests Summary

Endpoint Result Summary

Media Extraction / Bulk Download

20

Challenge

How to quickly & easily export relevant conversations for a

compliance investigation, eDiscovery & Communication

Surveillance

Solution

The NICE COMPASS Bulk Download provides a secure,

auditable solution with

• Extraction of voice calls can be performed with a simple

job creation directly from the COMPASS portal

• 1.7 Million calls can be downloaded per day on a single

extraction server

• Queries are batched and queued to ensure there is no

impact on operational systems (1% CPU load)

• Technology neutral .xml and .wav output enable easy

interoperability

• Selectable time range and users

• Downloads in the background to allow continued

working

Historic Downloads

Audit

Current Downloads

Progress

Select Users and/or Groups, create Start

and End Date and trigger operation

Reporting & Auditability

21

Challenges

• Prove that all of regulated users are being

recorded

• Prove that the records correctly retained

• Get visibility to system operations that happen

“behind the scenes”

• Check who has accessed critical compliance

data and for what purpose

Solution

NICE COMPASS has a centralized capture of

interactions and events allowing to understand the

compliance recording status

• Every activity captured for auditing

• Simplified automated delivery options

• Central dashboards that highlights trend and

exceptions

• Open API and Excel /CSV output to support other

BI needs

Default templates

available

Build reporting

schedules

Customizable reports via API

Automation

22

Challenge

Use an efficient process to reduce manual errors and

prove the correct people are being recorded

Solution

The API of NICE COMPASS enables

• Correct configurations by programmatically

managing who should be recorded, their retention

and permissions from 3rd party data source

• Introduce a “Golden Source” for the user data

• Centralized provisioning solution

• Auditing of API actions

• Reconciliation of recorded users against source

data

REST API

COMPASS API calls

all require basic HTTP

authorization and

return JSON dataset Secure API link based

on HTTPS certificate

All Actions Added to

Centralized Audit Reporting

READ & WRITE Functions for

Updates and Validation

Open System

23

Challenges

• How to get recording system data in an indexing

system for additional investigations and analysis

• How to ensure the recording data is open for all

future application and regulation requirements

• How to square openness with security

Solution

The Index API of NICE COMPASS enables

• secure access to the interaction metadata

• archive pointers for direct access to media content

• real-time updates for immediate investigation and

analysis

• TLS/SSL and authenticated user access to ensure

openness is controlled and audited

COMPASS Portal

Extraction Server

Recording Check Elastic Index

3rd Party SystemCOMPASS

API

System X

NICE COMPASS

Retrieve

information

Store

information

REST API Calls Require Basic HTTP

Authorization and Return Dataset e.g. GET

/ic*/_count?q=int_core_hostname:NTR_London

Count calls for NTR Core Host NTR_London

Secure API link

based on HTTPS

Certificate

READ functions for access to all

interaction data and content locations

Are all calls archived successfully with the correct retention periods?

How do I export the calls we are asked for quickly?

Can I prove the correct people are in the system and successfully recording?

Can I prove “outside parties” are aware conversations are recorded?

How do I know the recording system is working even though I haven’t received any alarms?

Is the recording quality adequate?

Did I capture everything I

should have?

Can I capture new modalities

from Skype and Cisco?

Can I find the calls I am asked for

quickly?

COMPASS can help you say ‘YES’ to these key questions

24

Are the correct people recorded?

Capture Prove

Retrieve

Thank you, please also join:

For more information visit: www.HolisticSurveillance.com

28 September

Reduce Risk with Automated Communications Surveillance

Improve your compliance process

The challenges of trading compliance have become increasingly complicated by new regulation and new methods of

communication. By proactively monitoring ALL communications, you can prove your ability to be in compliance and reduce

costs of manual processes and recourses to meet all regulatory requirements. Automated Communication Surveillance

provides the ability to reconstruct trade communications as they happen and link them to transactions and enable a search

through every type of related interaction including voice, instant messaging, text and email.

www.HolisticSurveillance.com / webinars

Singapore 3pm / Tokyo 4pm