The National Association of Securities Dealers Rule 2711 (NASD 2711) stipulates that investment banking be run separately from research and trading to ensure trust in the public markets. And while organizations may attempt to prohibit communication between these groups, email and other technologies serve as a conduit of improper communication. It may also be in the interest of the bank to allow an analyst to “cross the wall” for a particular engagement. However, it is necessary to ensure that information obtained during that engagement stays on the appropriate side of the wall.

 

In order to comply with NASD 2711, financial organizations must:

• Identify and protect regulated data wherever it is stored, transmitted or processed
• Prevent unauthorized data access and usage
• Ensure that end-users cannot arbitrarily remove protection
• Provide evidentiary-quality audit trails that prove data is protected

Complying With NASD 2711

Liquid Machines Document Control and Email Control software helps investment banks and other financial services institutions protect regulated information in compliance with NASD 2711 by:

• Protecting all regulated information by encrypting it at all times when at rest or in transit
• Controlling access and usage privileges to the data regardless of where it travels
• Ensuring that protection cannot be arbitrarily removed by end-users or system administrators
• Controlling and auditing all methods of data usage: copy/paste, printing, file writing, etc.
• Automatically applying protection to regulated information
• Blocking email between specific groups of users by automatically applying policies to any message at the email gateway
• Providing detailed logs and audit trails of content access and usage in a format that can be easily stored, viewed and imported into other enterprise systems
• Integrating with existing authentication services and not requiring additional changes
• Supporting compliance activities without changing the way users work