S3 Unveils Enhanced Regulatory Reporting Suite

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Company’s augmented market structure analytics platform provides clients with a comprehensive solution for regulatory reporting and analysis requirements


AUSTIN, TX September 14, 2016 – S3 (“the Company”), a financial services software company that provides customized solutions to monitor and analyze trade execution, today announced upgraded capabilities for its Regulatory Reporting Suite (the “Suite”). The Company now provides customers with regulatory reporting information necessary to comply with proposed enhancements to SEC Rule 606 as well as detailed analysis for the upcoming FINRA Tick Size Pilot Program, adding to its industry-leading regulatory reporting and best execution analytics tools. The Suite provides detailed analysis for multiple asset classes and regulatory reporting requirements, allowing its customers to holistically monitor the entire market and remain fully compliant with financial market regulations.

S3’s fully customizable platform offers exhaustive analytical capabilities providing market surveillance, best execution insight, order routing analysis, and more for both retail and institutional firms across multiple asset classes. The Company provides seamless reporting for SEC Rules 605, 606 and 611, as well as for Regulation SHO, and has enhanced its monitoring and alerting functionality specifically for Rule 606 given the SEC’s recently proposed amendments to that rule. The SEC voted in July 2016 to propose rules that for the first time would require broker-dealers to disclose the handling of institutional orders, and S3 will in the near-term provide its broker-dealer clients with all relevant data. Additionally, the Company is currently augmenting the Suite to offer detailed execution quality and venue analysis data for child orders composing institutional parent orders, information that brokers would be required to divulge under the proposed updates to Rule 606 and that has many additional applications for market structure insight. These amendments also include more detailed retail order routing reports, and through its Regulatory Reporting Suite S3 offers further clarity into retail orders executed by broker-dealers, allowing them to prove best execution and other data points required for reporting to the SEC.

Mark Davies, CEO of S3, commented on today’s news, “As securities markets grow ever more complex, regulatory bodies including the SEC continue to enhance their oversight in an effort to bring greater transparency and fairness to the securities markets. S3 provides detailed analytical insights relevant to the reporting requirements for a variety of client types and asset classes, and we pride ourselves on pushing the industry forward by providing the most complete market structure analysis available. S3’s Regulatory Reporting Suite provides clients with the information necessary to ensure full compliance with regulatory requirements, and the platform is fully customizable to the unique needs of each customer. The software suite provides a deep level of transparency into market structure and order routing for equities, options, and fixed income securities, allowing clients to quickly and easily compile reports for regulatory bodies without sacrificing their accuracy.”

S3 also disclosed today that it has extended the deep level of analytical granularity provided by its Regulatory Reporting Suite for those securities included in FINRA’s Tick Size Pilot Program, which begins in October 2016. The Company already offers these analytics for Tick Size Pilot securities, which are all currently categorized under the Program’s “Control” group. Once the Program goes live in October, S3’s Suite will categorize these securities into their respective Tick Size Pilot test groups and provide detailed analytics across each of the four categories, as well as for all securities included in the Program. S3 offers this Tick Size Pilot analysis functionality as part of its Regulatory Reporting Suite at no additional cost to clients.

S3 further bolstered its Regulatory Reporting Suite to monitor client orders for trade-through and marking the close violations, and in the short-term will add monitoring capabilities for wash sales and spoofing. Multiple customers have deployed the market surveillance tools in order to avoid these fraudulent practices and thereby enhance transparency in the marketplace. The regulatory platform offers customers both a comprehensive view of trade-throughs across the market, as well as streamlined visibility into any internal violations at their own firms. Additionally, S3’s Suite performs key checks on customer trades to ensure that they do not “mark the close.” If the data points pass certain thresholds, S3 alerts the client that its activities may violate marking the close restrictions. These industry-leading features further complement the holistic regulatory insights offered through the Company’s Regulatory Reporting Suite.

Mr. Davies concluded, “By providing industry-leading execution analysis data, we seek to ensure that our clients not only achieve best execution and price improvement, but also remain fully compliant. We believe in building trusted relationships with clients, and our expert team partners with customers to ensure that they have the tools and information necessary not only for regulatory compliance, but also for a wide variety of market insights that enhance trade pricing for exchanges, determining trading costs for buy-side institutions, and much more. We share our customers’ commitment to promoting only the most beneficial and efficient trading activity, and I am proud that our software provides the market with the comprehensive insights necessary to improve trust in the securities industries.”

For more information please visit: www.S3.com.

About S3

S3 is a financial services software company that provides customized solutions to monitor and analyze trade execution, facilitate transparency, and simplify regulatory compliance for options, equities, and fixed income securities.  The Company’s products are used today by many of the world’s largest financial institutions, broker-dealers, exchanges, bulge bracket and retail banks, and market makers to deliver market structure analytics and best execution reporting.  S3 leverages its proprietary software to provide third-party trade verification and optimize trade execution for both the U.S. and Canadian markets.

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