Eliminate multi-million dollar audit exposure and ensure ongoing compliance
The compliance landscape has fundamentally changed. New SEC requirements specifically target private equity firms and alternative investment managers, while major vendors have increased audit activity by 40% year-over-year.
Market data compliance has evolved from a back-office concern to a C-suite risk. Vendor audits are increasing in frequency and sophistication, regulatory requirements are expanding, and the financial consequences of non-compliance have never been higher.
Private equity under the microscope. For the first time, PE firms face explicit market data reporting requirements under new SEC rules. Many firms have never properly inventoried their market data usage and are unprepared for compliance reviews.
Alternative data creates new exposure. The explosion of alternative datasets—from satellite imagery to credit card transactions—has created licensing complexity that most compliance teams don't understand.
Remote work amplifies risk. Post-pandemic hybrid work models have created new distribution patterns that many firms haven't properly licensed, creating significant audit exposure.
Back-fees, penalties, and legal costs can reach $10M+ for large institutions. Even mid-sized firms regularly settle for $2-5M.
Vendors can terminate services immediately upon finding violations, potentially shutting down trading operations.
Major audits become industry knowledge, affecting client perception and LP confidence.
SEC violations can trigger broader regulatory reviews and enforcement actions beyond market data.
We've been on both sides of vendor audits—as buy-side market data managers defending our firms and as industry experts advising on audit strategy. We know exactly what vendors look for and how to address gaps before they become million-dollar problems.
We conduct a thorough evaluation of your current compliance posture:
If we identify compliance gaps, we help you address them proactively:
When you receive an audit notice, we serve as your advocate:
Compliance is not a one-time project—it requires ongoing vigilance:
The 2024-2025 regulatory changes make you a priority target. If you haven't conducted a comprehensive audit of your market data usage, you're exposed. Many PE firms have grown through acquisition without harmonizing market data licensing—creating massive compliance gaps.
Growth creates compliance risk. When your user count doubles but your licensing processes haven't evolved, you're vulnerable. We've seen numerous cases where firms discover 30-50% of users are improperly licensed during internal audits.
Alternative data providers have different—and often stricter—licensing terms than traditional market data vendors. Social media data, satellite imagery, and transaction data all come with unique redistribution restrictions that most compliance teams don't understand.
M&A creates instant compliance exposure when you inherit another firm's licensing relationships, usage patterns, and potential violations. We help clean up these situations before vendors discover them.
Firms that engage us proactively before receiving audit notices typically achieve:
When we represent firms already under audit, we typically achieve:
Schedule a confidential compliance assessment. We'll identify your exposure and provide a clear remediation roadmap.
Schedule Compliance Assessment