DASH Regulatory Technologies’ software-as-a-service (SaaS)-based DASH 360R platform has received its System and Organisation Controls (SOC) 1 Type II attestation.
The SOC 1 Type II audit of DASH 360R was completed by a global accounting firm under the attestation standards established by the American Institute of Certified Public Accountants (AICPA).
Broker dealers use DASH 360R for US regulatory capital calculation and reporting compliance.
DASH Regulatory Technologies undertook the SOC 1 Type II process to specifically address the needs of DASH 360R customers and their auditors who rely on DASH 360R controls to review the user entity’s financial reporting.
The assessment covers the web-based 360R system as well as the information technology general controls over the following calculation modules that generate key inputs to various regulatory reports.
This includes risk-based haircut, fixed income haircut, repo, stock borrow/loan, risk-based margin, option margin optimiser, security allocation information engine and the supplemental inventory schedule system.
In the US, broker-dealers are required by the Securities Exchange Commission (SEC) and the Financial Industry Regulatory Authority (FINRA) to maintain specified levels of capital, and to be able to demonstrate moment-to-moment compliance with the SEC Net Capital Rule.
DASH explains brokers must be able to calculate, on an intra-day basis, their capital charges, which can be an extremely complex process.
DASH 360R automates the calculation and reporting process around these regulations as well as any firm-specific requirements, easing one of the most significant back-office operational challenges faced by brokers and clearing firms.
Venu Palaparthi, DASH Regulatory Technologies’ managing director, says: “Following the acquisition of LDB Consulting in 2017, DASH made a strong commitment to updating and modernising the LDB system. In furtherance of that objective, we implemented the cloud-enabled DASH 360R version, which can be accessed via the web.”
Palaparthi adds: “During 2020, the pandemic-induced remote work environment provided an impetus for adoption of the 360R suite. Simultaneously, we doubled down on our investment in DASH 360R by embarking on a SOC 1 Type II independent attestation. We are confident that the in-depth SOC 1 Type II attestation provides additional comfort to our users regarding the effectiveness of our controls, quality of our calculations and the security of user information within 360R and builds on the trust that our customers place in the calculations.”
