Are security and GDPR compliance a problem? This is the question that numerous financial services providers are trying to answer. The last decade has seen a boom in online trading, with an affluent number of Forex brokerage firms stepping into the financial space, each wanting to take advantage of investors’ growing interest in financial derivatives and recently especially in cryptocurrency-based CFDs.
The aggressive marketing strategy that some of these financial institutions used to achieve their goals made regulators seek legal ways to restrict them. And so they did with MiFID II.
But this is not all, the EU legislators topped it up with the General Data Protection Regulation (GDPR). Since 25th May 2018 when it became enforceable, the new regulation protecting data privacy served as the sword of Damocles in the regulators’ hands, generating a compliance storm for brokerage houses.
GDPR opens a new land of opportunities
While the marketing hands of brokers are tied by the GDPR, the new rule creates new opportunities, and, well, the first ones out there to see it were fintech providers.
One such forward-looking financial technology developer is Tradesocio. Set on a path to reinvent investment management and sound the alarm for brokers and other investment services providers that it’s time to hone their product offering in a way that complies with the General Data Protection Regulation, and continue to conduct business in the same way they used to with more traditional technologies.
“We have developed a suite of comprehensive and fully transparent fund management solutions that come to the rescue of brokerage houses and investment banks in Europe, aiding them to fine-tune their value proposition in a GDPR compliant way”, said Tradesocio CEO Wael Salem.
Dedicated to ensuring the best investor experience by providing reliable technology solutions to brokerage firms, Tradesocio places data security at its forefront. By implementing the highest standard of security policies and protocols, we have developed a multi-pronged platform which comprises over 15 modules for algo and mirror trading, separately managed accounts (SMA), robo-advisory, ETF station and other multi-asset portfolio management extensions alongside built-in CRM, real-time reporting and marketing tools which aim to simplify and streamline business operations for financial organisations.
Additionally, to assist brokerages to attain their goals and expand market share effortlessly, in a transparent way while keeping to the word of the law, we have carefully designed and implemented multiple protocols geared towards the assurance of data integrity, data and network security, load balancing and monitoring.
Placing data integrity and safety first
To achieve data integrity, we use different preventive measures such as:
- Distributed database architecture to provide high availability of data. This means that data is stored on multiple servers which have the same physical location as well as dispersed on other interconnected servers randomly located across the network.
- Database server and Application server hosting on different data centres in strategic hubs around the world such as Shanghai , Hong Kong , Tokyo, London, New York, and Frankfurt. This helps us achieve high network performance and enhanced data availability. Specifically, in case of force majeure situations (e.g. power failure, natural disasters etc.) when one server drops, all the requests directed to it will be redirected to the nearest data centre(s) without any delay, thus balancing the load among all data centres (global load balancing) and preventing server overloading. In this way, we eliminate the risk of single point of failure.
- Database mirroring and master-slave replication to maintain high data availability as an additional measure, without compromising system performance.
- Data backup every 20 minutes. Furthermore, to ensure utmost data security, Tradesocio deploys a combination of 128 and 256-bit encryption enabled with the Tradesocio custom algorithm used for cyber-proofing data, in addition to SSL encryption. Regular audits are also carried out to ensure that all data is securely encrypted and there are no vulnerabilities.
- DNS spoofing (also known as DNS cache poisoning) and DDoS (Denial-of-service) attack prevention are among the network security policies that Tradesocio applies to tamper-proof its network and ensure optimal uptime and functionality.
- Real-time monitoring through manual, automated and third-party network monitoring to identify any potential issues and take immediate action to avoid any interruptions of operation.
By combining latest-generation technology with tested encryption protocols and data security policies, Tradesocio creates the future of investments, casting a new light on investment management. “The landscape is changing and we need to adapt to the new landscape, and we can only do that by being open to embracing the new trend and rethink the way we perceive investment and investment technology. The right decisions can only be made in a fully transparent environment, and this is exactly what we are trying to create with our technology”, highlighted our CEO.
A Snapshot of GDPR and PDPA Tech Compliance
Taking fintech to the next level, Tradesocio has taken into consideration the European GDPR legislation and the PDPA (Personal Data Protection Act) in force in Singapore.
Aiming to establish baseline standards for data privacy across the financial sector, both GDPR and PDPA regulations require brokerage firms and other investment services providers to exercise utmost diligence to protect their investors’ data and furthermore ensure they have their legal consent to store such data and use it for marketing or other purposes. That’s exactly where Tradesocio comes in with its fully transparent and secure solution.
By taking all the necessary steps to ensure utmost data privacy protection, our solutions allow brokers to handle their clients’ sensitive information diligently and safely, in strict compliance with GDPR and PDPA requirements through end-to-end encryption. This is how we help brokers tune in to the latest regulatory changes dominating the compliance landscape.