TD Securities Streamlines Regulatory Reporting with EDA 

Regulatory compliance is a critical function in global financial markets, requiring firms to process vast amounts of trade data in real time, identify anomalies, and ensure that reporting meets strict regulatory requirements. For TD Securities, ensuring accuracy, timeliness, and efficiency in trade transaction reporting is essential—not just for compliance but also for risk mitigation and operational resilience.

At EDA Summit 2024, Kaushik Mody, Director of Technology Solutions at TD Securities, shared how the firm is leveraging event-driven architecture (EDA)—powered by Solace PubSub+—to enhance the effectiveness and efficiency of its regulatory reporting platform.

You can watch the full presentation at the bottom of this post or over at EDA Summit.com

Why EDA is Critical for Trade Reporting

Regulatory trade reporting platforms must process a continuous stream of transactions—capturing trade execution, validating transaction details, and submitting reports to regulators. Each trade generates multiple events, from execution to submission, acceptance, or rejection by regulators. In addition, internal monitoring events track platform health, queue utilization, and message throughput to ensure smooth operations.

For TD Securities, effectiveness in regulatory reporting means understanding what is happening right now, comparing it to historical trends, and taking proactive action when anomalies arise. This requires a real-time, event-driven approach to data collection, processing, and trend analysis.

By integrating Solace PubSub+ into its reporting infrastructure, TD Securities has built a system that tracks trade activity in real time, overlays it with historical patterns, and predicts deviations before they become problems. This predictive capability enables the firm to stay ahead of regulatory thresholds, prevent penalties, and optimize operations.

Real-Time Monitoring and Predictive Analytics in Action

To illustrate the importance of real-time monitoring, Kaushik Mody shared an analogy: Imagine a person taking a daily walk along the same path. If they slightly veer off course, it may not be a big deal. But if they suddenly take a completely different route, something unusual has happened—perhaps an obstacle like a fallen tree or a wild animal forced a detour.

This concept applies directly to trade reporting. TD Securities processes an average of 100,000 derivative trades per day, establishing a baseline trend of normal activity. If that number suddenly drops to 20,000 or spikes to 200,000, the system detects the deviation from expected behavior and triggers a real-time alert for investigation.

Similarly, regulators enforce strict trade acceptance thresholds, ensuring that submitted reports maintain a minimum 97% acceptance rate. If TD Securities’ acceptance rate suddenly falls below that threshold—indicating potential errors, data issues, or system failures—the system automatically flags the anomaly so that corrective action can be taken immediately.

How TD Securities Built a Smarter Regulatory Reporting Platform

At the heart of TD Securities’ trade transaction reporting platform is Solace PubSub+, which enables real-time event streaming, integration, and observability. The architecture consists of multiple event sources, including:

• Business-Centric Events – Trade executions, regulator acknowledgments, and negative acknowledgments (NACKs)
• Monitoring Events – Queue utilization, message rates, and system health metrics from Solace’s SEM API
• AI-Powered Analytics – Machine learning models that analyze current vs. historical trade activity, predicting and alerting on potential issues

All these events are funneled into visualization dashboards, monitoring tools, and alerting systems, ensuring that deviations from expected behavior are caught early. This allows TD Securities to proactively address issues rather than reacting after regulatory deadlines are missed.

Benefits of EDA in Trade Reporting

By adopting event-driven architecture, TD Securities has transformed its regulatory reporting operations, achieving several key benefits:

• Improved Anomaly Detection: Real-time monitoring identifies trends and deviations, ensuring trade volumes, acceptance rates, and system performance stay within normal thresholds.
• Faster Response to Issues: Automated alerts and notifications allow teams to immediately investigate potential system failures, regulatory breaches, or performance slowdowns.
• Scalability and Flexibility: The event-driven approach allows the platform to adapt dynamically to varying trade volumes, regulatory changes, and infrastructure demands.
• Reduced Compliance Risk: By ensuring high acceptance rates and early anomaly detection, TD Securities minimizes regulatory penalties and operational disruptions.

Final Thoughts

For financial institutions dealing with regulatory reporting, event-driven architecture is no longer optional—it’s essential. TD Securities has successfully leveraged Solace’s event-driven platform to enhance monitoring, improve response times, and ensure compliance with regulatory mandates.

By combining real-time trade monitoring, predictive analytics, and automated alerts, TD Securities has built a system that not only ensures compliance but also optimizes operational efficiency. Their approach highlights how EDA can transform complex, data-heavy processes into streamlined, intelligent systems that drive better outcomes.

As financial regulations continue to evolve, firms that embrace real-time event processing will be better positioned to navigate compliance challenges and maintain a competitive edge in global markets.