Insight

Case Study: Daiwa Capital Markets Europe Ltd

Unified Comms
Market Sector: Finance

Business Function: Investment Banking across Equity, Fixed Income, Equity & Debt Capital Markets and Global Convertible Bonds

Key business requirements: An easy to administer voice and data recording solution that integrates with existing telephony and trading systems to capture and securely store voice and data communications and transactions, and helps ensure compliance with Financial Conduct Authority (FCA) regulations in the UK.

Solution:

Quantify Recording Suite from Red Box Recorders helps Daiwa meet its business and compliance needs by:

Capturing the voice and data communications of 450 personnel across the trading floor and back office of its London headquarters

Recording IP Trade turrets and Cisco telephony in just one server, resulting in a lower footprint

Archiving recordings to secure network storage to comply with the company’s data retention policy

Delivering automated failover for resilience and ongoing business continuity and compliance

About Daiwa Capital Markets Europe

Daiwa Capital Markets Europe Limited is the wholly owned investment banking subsidiary of Daiwa Securities Group Inc., one of the largest brokerage and financial services groups in Japan. From its London headquarters and offices in Europe, the company operates across business areas including Equity, Fixed Income, Equity & Debt Capital Markets and Global Convertible Bonds. In 2014 the firm celebrated 50 years in London.

The Challenge

The existing recording solution being used by Daiwa Capital Markets Europe Limited did not meet its requirements. Being difficult to use and administer, routine system changes and updates were time consuming and created a strain on valuable internal resources.

Daiwa needed a flexible voice and data recording solution that would enable the secure recording of all internal and external voice and data communications relating to the reception and transmission of orders and transactions. The system needed to be easy to use and quick to update when required.

 

The Solution

After enlisting the expertise of Linx-Networks, Daiwa chose Quantify Recording Suite from Red Box to record the audio communications of 450 personnel at its company headquarters in London. This included a mixture of IP Trade turrets and Cisco phones across its trading floor and back office.

As a certified partner of both IP Trade and Cisco, Red Box was able to offer Daiwa the confidence that its Quantify solution would meet the highest standards for integration and interoperability.

By capturing the activity across all trading and telephony devices on a single server, Quantify helps Daiwa to minimise its footprint in an environment where space is at a premium. In addition, to support Daiwa’s need for business continuity and ongoing compliance with financial regulations, Red Box deployed a resilient pair of Quantify recording servers to provide failover in the event of hardware failure.

Quantify Search and Replay enables Daiwa to securely capture and quickly retrieve recordings using searchable system metadata and to export recordings so that they can be shared with regulators. Recordings are archived to storage and retained in line with Daiwa’s one year retention policy.

Daiwa Capital Markets Europe Limited, said: “With our compliance demands increasing it is important for us to choose solutions that not only help us comply with regulations, but save us time by being easy to use and administer. Red Box and Linx-Networks have delivered a recording solution that meets these criteria and also enables us to add or redeploy channels to meet the changing needs of our business, giving us greater flexibility.”

Will Hopkins, Head of Global Finance Sales at Red Box Recorders, said: “The reality of conducting business in the current regulatory environment is particularly challenging and it is important for financial organisations to demonstrate to regulators that they have a resilient, robust voice recording system in place. At Red Box we are committed to developing solutions that fully support the needs of our customers and partners.”

Gareth Malone, CEO at Linx-Networks, said “It was vital for Linx-Networks to deliver to Daiwa Capital Markets a recording solution to meet their precise requirements and install the solution with no disruption to the traders or back office operation. Red Box was the most suitable solution for Daiwa due to the Cisco and IP Trade full integration - it was important to capture calls for Cisco users (back office) and the traders’ dealerboards equipped with broker lines with the silent suppression feature. We are happy to say the migration was very successful with no disruption to Daiwa.”