FinClear, Australia’s leading provider of trade execution and third-party clearing services, has recently adopted Eventus’ Validus platform for enhanced trade surveillance and post-trade monitoring.
This strategic move is particularly significant considering FinClear’s extensive reach in the Australian market, where it handles one in two retail transactions, clearing and settling AU$360 billion in transactions annually.
The company also manages more than AU$145 billion in listed assets and supports over 570,000 accounts, servicing more than 250 wholesale intermediaries.
A decrease in false-positive alerts and enhanced capacity to detect trading behaviors
Andrea Marani, CEO of FinClear Execution and Clearing Services, highlighted several key factors that influenced the decision to transition to Eventus’ Validus platform from their previous provider. The primary reasons include the platform’s ability to be customized, its technological sophistication, and the proactive engagement and dialogue with the Eventus team.
“Both of our companies have made a big commitment on this implementation, and this has been much more of a partnership than a vendor-customer relationship. Eventus gave us the opportunity to tailor Validus to the specific needs of Australia’s equity markets. Since deploying the platform, we’ve already seen a marked reduction of false-positive alerts, and we’re now picking up behavior that we wouldn’t have captured previously.
This collaboration has been described as more of a partnership than a traditional vendor-customer relationship. The tailored approach provided by Eventus enabled FinClear to adapt the Validus platform to meet the specific requirements of Australia’s equity markets. Since its deployment, FinClear has observed a notable decrease in false-positive alerts and an enhanced capacity to detect trading behaviors that were previously undetected.
The choice of Eventus’ Validus platform aligns with the increasing regulatory focus on brokers to monitor trading activities and maintain market integrity. FinClear is responsible for reporting suspicious activities and providing accurate data to regulators daily. The stringent regulatory environment, which includes severe penalties for non-compliance, makes Eventus’ software an essential tool for FinClear to manage these growing responsibilities effectively.
“There have been severe penalties imposed on brokerage firms for not doing so. These responsibilities continue to increase, and Eventus software will be an essential tool to assist in managing these responsibilities”, Marani added.
Eventus CEO Travis Schwab expressed the mutual benefits of this partnership, noting FinClear’s significant role in the Australian broking community. “We’ve truly established a mutually beneficial relationship, and the firm’s interest in collaborating with us to not only customize the product for its needs but help us tailor the product for the Australian market generally has been extraordinarily beneficial.”
