Compliance Newsflashes: ICT and Actimize Team Up Against Online Fraud, and more

ICT and Actimize Integrate Online Fraud Prevention Solutions

ICT GROUP, together with Actimize, have developed an online fraud prevention solution incorporating key components from both companies.

ICT and Actimize will provide an integrated automated alerting solution for financial institutions concerned with the growing trend of online fraud. ICT will support Actimize's recently launched Online Fraud Prevention 2.0 solution, providing advanced interactive voice response (IVR) technology to proactively alert customers of potential fraud and validate their identity through the use of one-time passwords delivered using automated messages, according to the release.

The Actimize Online Fraud Prevention Solution offers risk-based authentication combined with financial fraud detection, and has been integrated with ICT's IVR technology. The Actimize solution calculates a risk-based authentication score using passive authentication data, session data, and enterprise data, and determines if and when additional user authentication is needed. When warranted, the Actimize solution can initiate sending a message and one-time password to the user through the ICT IVR system. The Actimize Online Fraud Prevention Solution is able to detect and prevent account financing fraud, phishing and account takeover, payment fraud, trading fraud, and more.

"ICT GROUP's automated solution is a great choice for financial institutions that want a cost-effective means to validate an online user's identity," said David Sosna, Actimize CEO, in a release. "Combined with Actimize's highly accurate authentication risk scoring, the combined solution provides two-factor authentication with minimal end-user disruptions."

Gissing Offers MiFID Output Handlers to Meet Directive's Transparency Obligations

Gissing Software, a solution specialist in the routing and transformation of real-time market and trade data, are in development with two new output handlers designed to enable trading organizations to handle the pre- and post-trade transparency obligations of the Markets in Financial Instruments Directive (MiFID). The Gissing MiFID Post-Trade Output Handler and Gissing MiFID Pre-Trade Output Handler are being developed following the publication of the MiFID Level 2 Guidance in February, which stipulates that all organizations trading in designated liquid shares across the European Union (EU) and European Economic Area (EEA) must follow the same regulations with regard to market transparency, according to the release.

MiFID will require all financial institutions to contribute post-trade data to one or more venues in as near to real time as possible, and in any case within three minutes of the transaction. In addition, systematic internalizers -- organizations that complete transactions internally rather than on the market -- will be required to contribute pre-trade quotes to one or more venues in real time. The objective is to maintain a standard of pre- and post-trade transparency that ensures that adequate information is made public as to the level of orders or quotes for a particular share, the level of trading in that share, and the executed prices for each share.

Using the new Gissing MiFID Pre-Trade and Post-Trade Output Handlers, Gissing ConteX clients will be able to automatically contribute both pre-trade and post-trade MiFID data to their choice of MiFID aggregation venues. As soon as they publish the relevant data onto their market data platform, or other suitable data source, it will be automatically routed to the appropriate destinations in real time, stated the release.

"With the MiFID transparency guidelines now largely enshrined in an EU regulation -- to be implemented consistently across all participating countries -- there can be no excuse for financial institutions to delay their preparations. To ensure MiFID compliance by the current deadline of November 2007, and allow sufficient time for testing, firms will need to have implemented the appropriate data handling systems by early 2007," explained Richard Gissing, CTO of Gissing Software. "We are committed to providing our clients with the most effective means of connecting their back-office systems and market data platforms to the appropriate MiFID aggregation venues."