Managing the employee trade pre-clearance process is an essential element within the employee compliance program. The pre-clearance process ensures that employees are restricted from trading in instruments that are prohibited, before they take any action that might compromise them and the organization. Your pre-clearance rules process must offer flexibility in application so that they are not applied to employees outside the boundaries of a particular rule. You will need the capability to run rules that may be applied to all employees, to those that work within a specific department, to those that work on a specific project team or, specifically to an individual. The flexibility to identify groups within your company, actively linked to your HR feed to ensure it is current, is an important MCO feature in managing the employee trade pre-clearance process.
MCO will configure a complete set of rules that will automatically run across every pre-clearance request made by an employee. In addition, you can adapt the rules that are run based on different variables, so one employee is subject to one set of rules while another may be subject to a different set of rules.
With MCO, your rules engine is always on and will automatically approve, deny or escalate the employees per-clearance trade request based on your automated rules. This makes for a highly efficient solution that does the laborious work for you. In the instance where a pre-clearance request is escalated, you can determine where it is routed based on different variables, which might include the employee’s department, the employee’s manager, the instrument being traded and so forth.
To learn more about managing the employee trade pre-clearance process or other aspects of the employee personal trading, click on any of the links below:
- Employee personal trading
- Capturing an employee’s personal trades and holdings
- Rules to run when managing employee personal trading
- Processing post-trade exceptions