Fonetic Announces Global Launch of Dodd-Frank and MiFID II Trading Record keeping Compliance Solution

  Fonetic Announces Global Launch of Dodd-Frank and MiFID II Trading Record
  keeping Compliance Solution

  Spanish interaction analytics firm launches globally; Signs worldwide deal
 with major global bank to deliver record keeping Dodd Frank compliance in 5
                                  languages

Business Wire

MADRID -- June 20, 2013

Fonetic, the first company to offer a Trading Record Keeping Compliance
Solution that directly meets the Dodd-Frank Act needs of trading floors, has
today announced its launch into North America and Europe following rapid
growth in customer demand for its linguistics-based speech and text analytics
solution. The launch coincides with the signing of an agreement with The
Santander Group, one of the largest banks in the world in terms of market
capitalization, to implement Fonetic’s solution in five languages across seven
of its major international trading rooms throughout Europe, Latin America,
North America and Asia.

Designed to create more transparency and accountability, the current
Dodd-Frank Act in North America and future MiFID II Act in Europe will bring
significant changes to existing global regulatory frameworks. The Dodd-Frank
Act places rigorous record keeping compliance obligations on financial
institutions with more than $3bn in transactions, which must be able to
provide regulators with all interactions related to a single operation, such
as a SWAPS or derivative trade, in a maximum 72-hour timeframe. With traders
conducting millions of high volume trades every minute via phone, email and
online chat services, the challenge for trading floors to achieve full
compliance before the April 2014 deadline has been vast.

Bernt Ostergaard, Service Director at Quocirca, the global research and
analyst firm said, “Clearly, the large financial institutions need to speed up
their compliance processes work to meet the aggressive Dodd-Frank deadlines.
But beyond compliance, the linguistics-based ability to near real-time monitor
trading over phone, email and chat will improve their ability to identify and
thwart rogue transactions.”

Fonetic’s Trading Record Keeping Compliance Solution has adapted complex
linguistics-based interaction analytics software, powered by the Nuance voice
recognition technology, to directly meet these compliance requirements. Its
award-winning solution, originally developed four years ago for Banco Bilbao
Vizcaya Argentaria (BBVA) as a record keeping compliance platform, enables
compliance teams to analyse and understand core aspects of conversations in
order to both proactively prevent market abuse and adhere to stringent
legislation. The solution captures, indexes, analyses and extracts relevant
unstructured data from all voice, email and chat interactions, enabling
compliance officers to find specific, relevant communications about any given
trade. By monitoring up to 79 different languages and dialects, the Fonetic
solution can reconstruct all interactions associated with a trade in moments.

“The simple reality is that all the world’s leading banks will have to comply
with Dodd-Frank by April 2014 or risk severe penalties. The challenge for
banks is how to compete in the highly dynamic derivatives and swaps markets
and not be over-burdened by compliance processes,” explained Juan Manuel Soto,
CEO, Fonetic. “For the past four years, Fonetic has honed its expertise and
technical understanding within its domestic market, delivering stress-free
record-keeping compliance to some of the biggest banks in Spain. Starting
today, our solution is now available to banks and trading firms globally, and
we look forward to ensuring that traders can continue to work in the most
efficient way, while still providing compliance departments with the
reassurance they need to trace every interaction on any given trade if
required to by regulators.”

About Fonetic

Fonetic helps businesses and institutions get to know and understand their
customers better. The company works with major international banks, contact
centres and utility companies including Vodafone, Telefonica, BBVA, Direct
Line (Linea Directa) and TNT. Fonetic brings social media, data analytics,
sentiment analysis and unstructured data together into a single multi-channel,
multi-language solution that decodes customer behavior and makes
recommendations on how to act. Its Dodd-Frank Record Keeping Compliance
Solution is the only linguistic-based solution in the market that enables
banks to meet the latest record keeping requirements on derivative and swap
trading ahead of the compliance deadline of April 2014.

Contact:

Media:
AxiCom PR for Fonetic
Jamie Stevenson, +44 (0)20 8392 4095
Mobile: +44 (0)7769640202
Jamie.stevenson@axicom.com