top of page
  • Writer's pictureAdmin

US Broker-Dealer Communications Surveillance Vendor Assessment

Updated: Jan 3


The Requirement

Faced with escalating regulatory complexity and an outdated lexicon-based surveillance system, a major broker-dealer embarked on a comprehensive evaluation of electronic communications surveillance providers and technologies. Their goal: a future-proof solution that seamlessly aligns with compliance requirements and empowers their ambitious growth strategy.


The Solutions

Clearly Defining Requirements and Goals:


We began with charting the landscape of our client's current challenges. We meticulously explored the limitations of their existing system, identifying obstacles that hampered their progress. We gathered the client's requirements, supplemented with regulatory expectations, recent industry trends and issues leading us towards a future-proof solution that would seamlessly align with their ambitious growth aspirations. By crafting a crystal-clear picture of their needs and goals, we laid the foundation for the transformation journey that not only satisfied regulations but fueled their expansion.


Researching and Shortlisting Potential Vendors:


Based on the finalized requirements, we identified an initial shortlist of about 10 vendors that met majority of the requirements. We identified pros and cons, discussed technological considerations surrounding implementation with each of the vendors to narrow down the list to 5 vendors, and send out Request for proposals (RFP) to them.


Requesting Proposals and Conducting Demonstrations:


Having narrowed down the contenders to a select few, we sent out detailed Requests for Proposals (RFPs) outlining the specific needs and evaluation criteria. We leveraged RegEdge's vendor assessment evaluation methodology to gather RFP responses, analyze the responses and allow the stakeholders to score on various parameters including functionality, user interface, scalability, security and technical support. The vendor assessment was, built from our pre-defined criteria and weighed for importance. Each vendor's proposal, pricing, and contract terms were meticulously analyzed, ensuring every detail received its due consideration. References from existing clients served as vital testimonials, offering firsthand accounts of vendor performance and support. Finally, we dove deep into the financial stability and sustainability of each contender, considering the long terms strategic direction of the firm.


Vendor Demos and Final Selection


From the RFP stage, we narrowed down to two vendors to perform an on-site demonstration at the client's office. We reviewed the vendor assessment scorecard to revise it based on the live demos, that allowed the client to narrow down to engage a vendor going forward. We documented all the feedback, evaluation notes and the rationale for each decision throughout the process that enabled the stakeholders to share with Steering committee and senior decision makers at the firm.


The Results and Benefits

Involving the key stakeholders throughout the process ensured transparency and clarity in the selection of the final vendor. We recommended the firm to conduct a competitive Proof of concept (POC) with both the vendors given their similar functionalities and ability to meet client requirements. The engagement allowed the firm to make informed decisions that ultimately resulted in successful POC in the follow-on phase prior to final production implementation. Clients derived the benefit of a methodical approach, fast tracked further by our existing knowledge of the surveillance vendor landscape and avoid major pitfalls.

20 views0 comments


bottom of page