if a firm does not want to receive research, reasonable steps should be taken in
order to discontinue its receipt and consumption.
Behavox helps the buy-side meet its regulatory requirements by
detecting if research was unwanted or if any benefit was derived
from its use. To detect unwanted research, the Behavox platform
uses preconfigured scenarios, which are statistical models, phrases
and machine learning algorithms tuned to detect irregularities.
The scenarios that detect unwanted research will vary in severity
depending on whether a benefit was received or not.
Scenario 1: Research was unwanted and the PM/trader never replied.
Scenario 2: Research was unwanted but the PM/trader responded
(even if he responded to say "no" to the research).
Scenario 3: Research was unwanted but it happens to be near a
trade based on date and time.
All three Scenarios will be escalated to the compliance team via
built-in Case Management interface. Note that all Scenarios use
proprietary methodology and are optimized to reduce false
positives (99% reduction in comparison to other systems).