Alternative Trading Systems Annual Audit

trading systemsBroker-Dealers are required under SEC Rule 15c3-5, FINRA Rules 3120 and 3011 to conduct annual audits. If you have an Alternative Trading System (“ATS”), that should also be included in the scope of your review, Oyster Consulting provides specialized reviews of ATS platforms. Included in an Oyster ATS Audit are:

  • Identification of ‘associated persons’ of broker-dealer or other licensed personnel as customers
  • Review of procedures for overseeing the purchase and sale of notes on the ATS platforms
  • Review the process under which the firm qualifies or rejects subscribers to the ATS trading platform
  • Review the transfer of securities for cash payment for securities agreed to be transacted via the ATS auction process
  • Review the record keeping and maintenance of accurate transaction information derived from the ATS
  • Review the posting of buy and sell transactions occurring on the ATS to the firm’s accounts
  • Review possession and control processes and procedures stemming from account trades on the ATS
  • Review best execution processes for the ATS
  • DOL Fiduciary Standard Assessments and Compliance

The Oyster Difference

Oyster does not perform check-the-box audits. Based on the initial assessment, the scope of the audit is refined to ensure a complete, thorough and robust review, concentrating on any problem areas or red flags identified.