BST Awards 2021: Best buy-side compliance product—trading: Linedata

OVERVIEW

The Linedata Compliance platform offers interoperable compliance technology and user-focused insights derived from artificial intelligence/machine learning technology and ESG data.

Typical user-firms: Linedata Compliance is suitable for all firms across the buy side, from institutional asset managers to insurance firms, fund administrators and wealth managers.

Linedata recently onboarded several multi-asset crypto fund clients. It supports P&L valuations and integration with crypto exchanges to automate trade booking workflows.

Linedata recently signed multiple Luxembourg management companies to its ESG compliance reporting service.

WHAT’S NEW

ESG Strategy Compliance Monitoring (SCM): Linedata’s latest offering combines Arabesque’s ESG data and scoring with flexible rule packs, mitigating greenwashing concerns.

Data Management Service (DMS): Linedata’s DMS integrates the ‘fuel’ that feeds the compliance engine, addressing a significant workflow pain point, reducing risk and ensuring firms’ ability to leverage critical systems like their automated compliance solutions.

Crypto currency: Linedata onboarded the first of several multi-asset crypto clients.

Linedata Analytics Service: Machine-learning models use clients’ own data to identify transactional data anomalies. Models deliver continuous insights to processes, pre-emptively forecasting operational failures and spurring preventative actions. To mitigate compliance breaches, the service applies ML techniques to historical breach data, identifying the resolution pathway by analyzing historical trends, reducing escalation time, and improving stakeholder service.

WHAT’S TO COME 

Integrated business intelligence: Linedata is creating alerting tools to interact with meaningful, accessible time-series data. Directly integrated into Linedata Compliance, this business intelligence uses visualizations to convey broader compliance “health” and early warning signs of risk.

WHY THEY WON

Since 2020, Linedata has embraced microservices and the cloud. Linedata Compliance is designed to support interoperable portfolio compliance, which clients say is easily scalable and integrates quickly with data and systems. The company has responded to the explosion of ESG funds by adding to the product new offerings for ESG monitoring, combining with Arabesque’s ESG data to address buy-side concerns about greenwashing.