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CFTC Fines Highlight Importance of CC1's Independent Assurance Layer Extracted from Capture Services

In the dynamic landscape of financial transactions, maintaining assurance and compliant records is not just good practice – it is a regulatory obligation. This week’s CFTC fine against Goldman Sachs underlines the pivotal role of independent reconciliation, and Custodia CC1 layer model is a game-changer with its assurance layer services.


Managing data capture as well as reconciliation across a global regulatory landscape has never been so key. The CC1 Assurance layer offers a centralised management portal, acting as an independent control centre that streamlines compliance assurance and recording functionalities across your entire recording infrastructure. From monitoring reconciliation to seamless search and replay capabilities, Custodia CC1 ensures your recording estate is not just compliant but optimised for success.


Championing a New Era of Record-Keeping Assurance


Goldman Sachs agreed to pay a substantial $5.5 million civil penalty against allegations of inadequate record-keeping for staff mobile phone conversations. The Commodity Futures Trading Commission (CFTC) found that Goldman Sachs not only breached a prior CTCF order but also committed record-keeping violations that marred its commitment to accuracy.


A vendor’s hardware posed challenges, leading to incomplete recording and retention of thousands of mobile device calls by employees. Additional vendor issues stemming from a new system introduced in May 2020 added another layer of complexity. Thousands of calls went unrecorded due to these glitches. The issue for Goldman Sachs was with its inability to oversee its reconciliation. This latest fine is a reminder that vigilance in record-keeping is an ongoing pursuit, especially after cease-and-desist orders. This serves as a reminder to the industry that the journey towards compliance is one that requires consistent efforts, and a new outlook at services not only capturing but assuring captured data, independently.


Pioneering Innovation against record-keeping failures


Custodia CC1 assurance layer stands as a shield, above recording systems, offering an unparalleled assurance layer that guarantees data accuracy and integrity. While classic recorders capture communications, CC1 also ensures their accuracy – an indispensable layer that bridges the gap between recording and impeccable data management.


Unlike recording vendors, Custodia CC1 is not confined to just capturing communications. It goes one step further – being an independent overseer that enforces governance policies rigorously. This independence is a critical aspect of efficient policing of data capture, providing an extra layer of security to your data management strategy.


Incorporating cutting-age technology, Custodia CC1 is designed to alert potential failures in record-keeping as they occur, to be remedied instantly. The assurance layer is an early warning system, automatically detecting any potential gaps in data capture. This innovative technology ensures that every communication leading to a trade is not captured but also retained in alignment with global regulations.



Assure your compliance strategy with Custodia CC1


Earlier this month, U.S. regulators fined nine Wall Street companies over employees’ use of personal messaging apps to discuss deals, trades and other business.


The penalties marked the latest wave of a sweeping two-year enforcement inquiry targeting Wall Street’s use of so-called ‘off-channel’ work communication such as text and WhatsApp messages in breach of rules which require firms to certain work-related communications.


Custodia CC1 reshapes the realm of communication record-keeping compliance. It does not just raise the bar: it redefines the protection of your record-keeping capabilities. With its innovative assurance layer, you can rest assure that every trade conversation is captured, retained, and managed flawlessly, in adherence to the strictest regulatory standards.


Elevate your communication compliance strategy with Custodia CC1 layer model – where innovation and assurance converge for uncompromised integrity and success.


Don’t just capture. Assure.

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