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Call Monitoring Tech Hangs over the Heads of City Traders

3rd Party Remote Call Monitoring Feature

March 29, 2016

Call Monitoring Tech Hangs over the Heads of City Traders

By Joe Rizzo, Contributing Writer

Audio communication monitoring systems are designed to automatically monitor recorded audio sessions. The goal is to be able to use them for the compliance purposes, speech analysis and transcriptions. They have become an essential part of an organization’s way of adhering to risk and compliance management mandates, as well as a training guide.


The technology has improved to the point where audio sessions can be analyzed close to real-time, with the ability to pick out key words. There has been a significant rise in the risk of cybercrimes, telemarketing frauds and phone hacking, so in an effort to monitor these instances, implementation of audio communication monitoring devices has quickly increased in the recent past.

Business process outsourcing (BPO) and call centers are the major users and customers of audio communication monitoring systems, but this will soon change to include city traders. Thanks to scandals such as the Libor and forex rigging, where nine banks paid about $9 billion in the U.S. over claims that they rigged foreign exchange markets, we see a need for increased monitoring of these types of deals.

According to Deloitte (News - Alert), by 2020 we can expect to see an increase in the global market for audio communication monitoring systems by as much as three times what is used today. Chris Durrant of Deloitte made the following comments: “The volume of telephone conversations to be monitored will rise exponentially over the next four years. This is due to increased regulation and rule changes moving towards near 'real time’ monitoring.”

Following the European Commission’s review of the Markets in Financial Instruments Directive (MiFID), the MiFID II contains new EU-wide rules governing investment firms, trading venues and market structures, as well as third-country firms providing investment services or activities in the EU. The overall effect is that it will require calls to be analyzed and retained for up to seven years.

The expectation is that the technology can be used to sort through keywords or phrases, saving considerable time when going through thousands of hours of phone conversations. Hopefully, the result will be shortened investigation times leading to the discovery of criminal actions a lot faster. Financial institutions could see the new MiFID II regulations in place as early as a few months from now, so it is not surprising that call surveillance vendors are pushing their technology to institutions. 




Edited by Rory J. Thompson
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