- ‘Have we updated the rule book with the newest regulatory provisions?’
- ‘Which of our rule book articles are covered by tests?’
- ‘Which obligations remain untested?’
- ‘What is our coverage percentage by regulation/jurisdiction?’
As financial organisations’ regulatory compliance obligations become increasingly complex and expansive, the links between them and the test coverage evidence may suffer. This complicates the work of compliance teams, but also reveals mapping and reporting processes that are not streamlined, which causes interdependencies to go obsolete and integration of new obligations to get delayed.
Conformance automation frameworks such as th2-RC enable compliance teams to align rule books, system requirements, testing artefacts and coverage reporting. With th2-RC, rule books can get continuously updated with relevant rules and standards without compromising coverage and traceability coherence. th2-RC can accommodate any regulatory framework, trading rules, asset classes and data protocols.
th2-RC’s AI-assisted coding plugin (that supports various LLMs) underpins rule creation but is not involved in test library execution. This allows the solution to achieve advanced functionality while being resource-light and fully compliant with regulations on handling personal and financial data.
th2-RC capabilities
- Bi-directional mapping of regulatory obligations to rule book provisions in any jurisdiction (e.g., Reg NMS, Reg SCI, CFTC, MiFID II, DORA, etc.) and across regimes.
- Easy and continuous addition of new rules / standards using natural language.
- Linking atomic rule book provisions to test artefacts.
- Intuitive controls for dynamic coverage reporting and gap analysis – formalise, track and monitor all your controls from a single interface.
- Real-time alerting and monitoring – receive alerts, document your observations and manage the implementation of recommendations.
- Express reporting – generate your customised plans and reports in just a few clicks, ready to be shared.
- Native to financial systems out of the box: requires minimal venue-specific customisation, compared to generic enterprise-grade compliance tracking solutions.
- Scale- and domain-agnostic: benefits small-scale venues and technology operators preparing for regulatory filings as well as large venues with cross-enterprise compliance needs.