Algo Governance

Risk, Controls & Governance for Algorithmic Trading

Comprehensive governance frameworks for algorithmic trading operations. From risk management to regulatory compliance to COO support.

Built by quants who understand trading. Designed for firms who take governance seriously.

Defence Framework

Three Lines of Defence

A structured approach to risk management and governance adopted by leading financial institutions worldwide.

1st Line

Business Operations

Front-line trading operations that own and manage risk on a daily basis.

Trading Desk
Day-to-day risk ownership
Operations
Trade settlement and reconciliation
Technology
System controls and monitoring
Product
New product risk assessment
2nd Line

Risk & Compliance

Independent oversight functions that challenge and monitor the first line.

Risk Management
Framework and methodology
Compliance
Regulatory adherence
Legal
Legal risk management
Information Security
Cyber and data protection
3rd Line

Audit & Assurance

Independent assurance on the effectiveness of governance, risk, and controls.

Internal Audit
Independent testing
External Audit
Statutory assurance
Model Validation
Independent model review
Regulatory Review
Regulator examinations
Algorithm Governance

Algo Trading Controls

Robust governance frameworks for algorithmic trading systems

Algorithm Lifecycle

Governance across the full algorithm lifecycle from development to retirement.

  • Design & Development
  • Testing & Validation
  • Approval & Sign-off
  • Production Deployment
  • Monitoring & Review
  • Change Management
  • Retirement

Pre-Trade Controls

Controls that prevent erroneous or non-compliant trades from reaching the market.

  • Order size limits
  • Price collars
  • Position limits
  • Fat finger checks
  • Credit checks
  • Regulatory restrictions

Post-Trade Monitoring

Surveillance and monitoring of trading activity for risk and compliance.

  • P&L monitoring
  • Position monitoring
  • Best execution analysis
  • Market abuse surveillance
  • Transaction reporting
  • Anomaly detection
Risk Management

Comprehensive Risk Frameworks

Enterprise-grade risk management for trading operations

Market Risk

Risk of losses from movements in market prices.

VaRStress testingScenario analysisGreeksSensitivity analysis

Credit Risk

Risk of counterparty default or credit deterioration.

Counterparty exposurePFECredit limitsNetting analysisCollateral management

Liquidity Risk

Risk of inability to meet obligations or exit positions.

Funding liquidityMarket liquidityConcentration riskStress scenarios

Operational Risk

Risk of loss from inadequate processes, systems, or external events.

RCSAKRIsIncident managementBCP/DRVendor risk
Regulatory Compliance

Key Regulatory Frameworks

Deep expertise in algo trading regulations across jurisdictions

MiFID II

EU
  • Algorithmic trading authorisation
  • Systems and controls
  • Kill functionality
  • Pre and post-trade controls
  • Monitoring and surveillance

DORA

EU
  • ICT risk management framework
  • Incident classification and reporting
  • Digital operational resilience testing
  • Third-party risk management
  • Information sharing

SM&CR

UK
  • Senior manager accountability
  • Certification regime
  • Conduct rules
  • Statements of responsibility
  • Fitness and propriety

SEC Rule 15c3-5

USA
  • Market access controls
  • Risk management controls
  • Supervisory procedures
  • Annual CEO certification
  • Erroneous order prevention
COO-as-a-Service

Your Outsourced COO Function

You need a COO function, but not necessarily a full-time COO. We provide scalable operational support that grows with your business.

From policy management to regulatory liaison to board reporting — we handle the operational compliance so you can focus on trading.

Policy Management

Maintain and update your policy library with proper version control and attestation.

Compliance Calendar

Track regulatory deadlines, filings, attestations, and renewals across jurisdictions.

Board Reporting

Prepare comprehensive board packs, risk reports, and compliance dashboards.

Regulatory Liaison

Manage relationships and communications with regulatory authorities.

Risk Oversight

Ongoing monitoring of risk metrics, limits, and breaches with escalation procedures.

Operational Support

Day-to-day operational compliance support scaled to your needs.

Ready to Strengthen Your Governance?

Whether you need a full risk framework review, help with MiFID II compliance, or ongoing COO support — we're here to help.