Compliance Automation
for Broker-Dealers
ETNA Trading and Clearing platforms eliminate compliance risk with FINRA-native automation, real-time reporting, and end-to-end audit trails.
The Compliance Burden Draining Broker-Dealer Margins
Broker-dealers face unprecedented regulatory pressure AND the staggering cost of manual compliance operations. Compliance labor costs are growing faster than revenue, forcing firms to choose between regulatory risk and profitability.
19%
Average Compliance Cost as % of Annual Revenue (2024)
$98K-$130K
Annual Salary Per Compliance Officer (Broker-Dealers)
61%
Growth in Employee Hours on Compliance (2013-2023)
$16.5M
Maximum FINRA Penalty for Compliance Failures
The Real Cost: Manual Compliance Operations
Manual Labor Overhead
Typical 3-5 person compliance team costs $400K-$700K annually
(fully loaded).
Manual 17a-13 counts alone cost $165K-$305K/year. Add to this: Blue Sheet manual work, CAT error resolution,
tax report prep - compound to $500K+
in annual labor friction.
Manual 17a-13 counts alone cost $165K-$305K/year. Add to this: Blue Sheet manual work, CAT error resolution,
tax report prep - compound to $500K+
in annual labor friction.
Blue Sheet & CAT Failures = $4.65M-$7M Fines
Two firms paid $4.65M for deficient EBS submissions (2019). Citigroup paid $7M (2016) for Blue Sheet errors. Multiple firms penalized for CAT data quality failures. Manual reconciliation is NOT compliant - regulators expect systematic accuracy.
Third-Party Reporting Costs Multiply
Third-party CAT software: $50K-$150K/year.
Compliance consulting: $25K-$50K. Tax reporting services: $20K-$40K. Blue Sheet verification: $30K+.
External auditors: $40K-$80K.
TOTAL: $165K-$460K annually on outside vendors.
Compliance consulting: $25K-$50K. Tax reporting services: $20K-$40K. Blue Sheet verification: $30K+.
External auditors: $40K-$80K.
TOTAL: $165K-$460K annually on outside vendors.
Staffing Burden & Scaling Problem
One compliance officer = $98K-$130K
per BD firm (2025). Adding staff = fixed overhead that doesn't scale with firm growth. No trading volume reduction = no compliance staff cost reduction.
Math breaks at smaller BDs.
Math breaks at smaller BDs.
Error Resolution Costs $40K-$80K+ Annually
Each reconciliation discrepancy = 2-4 hours of staff time ($200-$500/hr labor). 50-200 discrepancies per quarter = $40K-$80K in annual error resolution labor. Automation eliminates 90%+
of discrepancies.
of discrepancies.
Regulatory Compliance Deadlines Never Stop
Quarterly 1099 deadlines, monthly
EOD/SOD files, real-time CAT reporting, EBS responses within 5 business days, trade confirmations within T+1.
Manual processes = missed deadlines = fines + operational crisis.
EOD/SOD files, real-time CAT reporting, EBS responses within 5 business days, trade confirmations within T+1.
Manual processes = missed deadlines = fines + operational crisis.
ETNA Trading Platform: Compliance Automation
ETNA Trader is the only platform with built-in, out-of-the-box compliance automation integrated directly into the back office. No plugins. No third-party dependencies. No manual workarounds.
PDT Trading Automation
- Automatic daily pattern day trader monitoring
- Real-time enforcement of FINRA 4-in-5 rules
- Configurable minimum equity thresholds
- Automated alerts and rule blocks
- Complete audit trail
for each enforcement decision
FINRA
Audit Reports
Audit Reports
- Pre-built compliance exception reports
- Trade blotter integration and validation
- Risk limit monitoring and escalation
- Real-time supervisory dashboard
- Audit-ready documentation generation
Fat Finger Compliance
- Pre-trade order validation
- Duplicate order detection
- Quantity/price reasonableness checks
- Configurable risk thresholds
- Automatic order rejection with logging
EOD/SOD File Generation
- Automated end-of-day settlement processing
- Real-time enforcement of FINRA 4-in-5 rules
- Configurable minimum equity thresholds
- Automated alerts and rule blocks
- Complete audit trail
for each enforcement decision
KYC Compliance
- Digital account onboarding
- Integrated KYC procedures
- Customer information verification
- Suitability documentation
- Annual KYC review workflow
CAT Reports
- Pre-built compliance exception reports
- Trade blotter integration and validation
- Risk limit monitoring and escalation
- Real-time supervisory dashboard
- Audit-ready documentation generation
CASE Reports
- Pre-trade order validation
- Duplicate order detection
- Quantity/price reasonableness checks
- Configurable risk thresholds
- Automatic order rejection with logging
BO Audit Widget
- Digital account onboarding
- Integrated KYC procedures
- Customer information verification
- Suitability documentation
- Annual KYC review workflow
ETNA Clearing Platform: Post-Trade Compliance
ETNA Clearing automates post-trade operations and clearing workflows, eliminating manual errors and regulatory risk.
Clearing Product Compliance Automation
Trade Confirmations
- Automated confirmation generation
- Regulatory disclosure validation
- Customer delivery confirmation
- Exception handling workflow
- Audit trail preservation
Account Statements
- Automated statement generation
- Monthly reconciliation
- Holdings valuation
- Fee disclosure compliance
- Delivery verification
1099-B Reporting
- Proceeds calculation automation
- Basis reporting accuracy
- Wash sale detection
- IRS submission integration
- Customer delivery validation
1099-DIV Reporting
- Dividend income classification
- Foreign tax withholding
- Capital gain distribution tracking
- IRS reconciliation
- Timing accuracy
Blue Sheet Reports (FINRA)
- Electronic Blue Sheet (EBS) automation
- Trading and account data extraction
- Format compliance validation
- Request Manager integration
- Regulatory submission tracking
CAIS Report (FINRA)
- Customer Account Info System data
- Account identifier mapping
- Ownership verification
- Privacy compliance (post-2025 rules)
- Regulatory reconciliation
Key Benefits: Why ETNA Stands Apart
Out-of-Box
No custom plugins or third-party integrations needed for FINRA compliance
Real-Time
Automated rules and alerts enforce compliance instantly across all trading activity
Audit-Ready
Comprehensive, searchable audit trails prove compliance to regulators
Multi-Custodian
12 clearing and 16 execution venue integrations eliminate single-provider risk
ETNA vs. Traditional Platforms
| Feature | ETNA Trader | Other Platforms | Cost Impact |
|---|---|---|---|
| PDT Rule Automation | Out-of-box automatic |
Manual or plugin |
Eliminates 0.5-1 FTE ($50K-$100K) |
| CAT Reporting Automation | Real-time capture & submission |
Manual + third-party software |
Saves $50K-$150K/year vendor costs |
| Blue Sheet (EBS) + CAIS | Automated validation & delivery |
Manual reconciliation required |
Saves $30K-$50K/year consulting |
| 1099-B/DIV Reporting | Built-in calculation & IRS submission |
External tax reporting services |
Saves $20K-$40K/year |
| Error Resolution Reporting | Proactive exception detection |
Reactive manual reconciliation |
Saves $40K-$80K/year labor |
| BO Audit Widget | Real-time tracking (included) |
External audit tools (+$10K-$30K) |
Eliminates vendor cost |
| Multi-Custodian Support | 12+ clearing firms native |
Often single-provider + integrations |
Eliminates integration costs & risk |
| TOTAL ANNUAL COST SAVINGS: $240K-$580K per Broker-Dealer + 1-2 FTE Reduction | |||
FINRA's 2025 Regulatory Priorities
FINRA's 2025 Annual Regulatory Oversight Report emphasizes:
Pre-Trade Risk Controls
FINRA expects firms to enforce reasonable pre-trade order limits, thresholds, and duplicative order controls. ETNA automates all of these with configurable rules.
Supervisory Systems
Firms must maintain robust WSPs and demonstrate effective supervision. ETNA's BO Audit Widget and exception reporting create audit-ready evidence of compliance.
CAT & Market Surveillance
CAT compliance failures now result in multi-million dollar penalties. ETNA's automated order event tracking eliminates CAT reporting errors.
Regulatory Reports Automated by ETNA
FINRA Audit Reports
CAT Data Submissions
CASE Reports
PDT Compliance Logs
Trade Confirmations
1099-B Forms
1099-DIV Forms
Blue Sheet Data (EBS)
CAIS Reports
Account Statements
KYC Documentation
EOD Settlement Files
How ETNA Mitigates Regulatory Risk
Reduce Compliance
Staff
Staff
Typical 3-5 person team → 1-2 people manage same volume with ETNA automation.
Saves $100K-$260K annually in FTE costs
Eliminate Third-Party Vendors
CAT software, consulting, tax services, audit tools all built into ETNA.
Saves $140K-$310K annually in vendor costs
Prevent $3.8M-$7M Penalties
Automated compliance = zero CAT/Blue Sheet/tax reporting errors.
Avoids regulatory fines + reputational damage
Reduce Error Resolution Labor
90% fewer discrepancies = 2-4 hours/quarter per FTE freed up.
Saves $40K-$80K annually in resolution costs
Real-Time Audit
Trails
Trails
Proof of compliance built-in - no more scrambling for evidence during FINRA exams.
Eliminates retroactive documentation burden
Scale Without Adding
Staff
Staff
Grow trading volume 100% without proportional compliance cost growth.
Improves unit economics as firm scales
