The Intersection of Clearing and Compliance Technology 

Broker-dealers rely heavily on their clearing firms for core operational functions. But clearing is no longer just about processing trades—it is a critical data source driving compliance and risk oversight. As regulatory expectations increase around reporting, surveillance, and monitoring, firms need to ensure that clearing data flows seamlessly into their compliance technology. 

Clearing Data as the Foundation of Compliance 

Every trade executed by a broker-dealer that passes through the clearing firm creates a rich stream of information that supports multiple compliance obligations. Firms are expected to use this data for: 

• CAT/CAIS Reporting: Consolidated Audit Trail (CAT) and Customer Account Information System (CAIS) compliance depend on accurate clearing data. Errors or mismatches in account identifiers, timestamps, or order events can trigger regulatory alerts and increase exam scrutiny. 

• AML Monitoring: Clearing records provide essential inputs for anti-money laundering (AML) surveillance. Patterns of deposits, withdrawals, and trading activity flagged through clearing data can indicate suspicious activity requiring further review. 

• Trade Supervision and Surveillance: Detecting manipulative behavior, insider trading, or market abuse depends on having complete and timely trade data from the clearing system. 

Without accurate clearing data, compliance functions struggle to deliver reliable reporting and surveillance. 

Integrating Clearing Data with GRC Software Platforms 

Modern governance, risk, and compliance (GRC) platforms can transform clearing data into actionable intelligence. When clearing feeds are integrated directly into compliance systems: 

• Automation reduces manual work: Data is ingested and reconciled in real time, reducing reliance on spreadsheets or ad hoc checks. 

• Error detection improves: Discrepancies between front office, clearing, and reporting systems can be flagged automatically. 

• Centralized oversight: Compliance teams gain a single view across CAT/CAIS reporting, AML reviews, and surveillance alerts. 

• Audit readiness strengthens: Integrated systems make it easier to demonstrate not only reporting accuracy but also the control environment around data.  

For firms, the ROI is less time chasing down data issues and more focus on proactive risk management. 

The Challenges of Accuracy and Timeliness 

Of course, integration is not without hurdles. Broker-dealers face ongoing challenges when relying on clearing data for compliance, including: 

• Data Latency: Clearing firms may not provide real-time feeds, leading to delays in monitoring or reporting. 

• Data Quality: Inconsistencies in account information, trade identifiers, or formatting can create errors that ripple across compliance systems. 

• Resource Demands: Smaller firms often lack the staff or technology budget to fully automate reconciliation and oversight, leaving gaps in their compliance framework. 

• Regulatory Pressure: Regulators have little patience for systemic errors in CAT/CAIS or AML monitoring, raising the stakes for firms that cannot get it right. 

Selecting the Right Clearing Partner 

Choosing the right clearing firm isn’t just a vendor decision. It is a foundational move that will shape your firm’s financial services delivery, compliance program, and ability to scale.  

When selecting or reviewing your clearing firm’s platform, make sure that you: 

• Understand your business model and growth plan 

• Evaluate vendors not just on features, but on risk management, scalability, and regulatory fit 

• Conduct structured due diligence and maintain continuous monitoring after onboarding 

• Prioritize integration, service, and long-term partnership potential 

• Document the risk assessment process and ensure it’s reflected in your policies 

Oyster Consulting has helped over 100 firms evaluate their clearing agreements, uncover savings, and optimize their clearing relationships. Now is the time to take stock of your clearing and custodian firm relationship and ensure that it is doing its part to keep your firm growing.  

Oyster Solutions 

Whether you are tackling CAT/CAIS challenges, strengthening AML surveillance, or preparing for your next exam, the Oyster Solutions GRC software platform can help you leverage your clearing data more effectively.  

Oyster Solutions supports a broad range of data feed integrations, API connections, and bi-directional synchronization—providing financial services firms with a connected and responsive platform. Client data, trade activity, and compliance tasks seamlessly flow between Oyster Solutions and other key business systems. Firms can centralize more operations, reduce manual processes, and ensure that data is accurate and always up to date—empowering teams to work more efficiently across functions.