Capital markets will grow and prosper only with the trust and confidence of the investors. Market regulators main responsibilities are to increase the investors trust and confidence. One of the main tools to do so is by the regulation and monitoring efforts on brokerage firms. Regulators monitor brokerage firms in terms of solvency and liquidity. e-Tech prudential system provides a full-fledged software solution for regulators to analyze the financial situation for brokerage firms. The system facilitates the process of monitoring and regulating brokerage firms by automatically generating and tracking a wide range of financial ratios. The system automates the complete cycle starting from receiving the solvency and liquidity reports from brokerage firms until analyzing the submitted information and extracting the financial ratios. The system provides a large number of customizable intelligent alerts and reports to notify the user of any discrepancy.

The system automates the complete cycle starting from receiving the solvency and liquidity reports from brokerage firms until analyzing the submitted information and extracting the financial ratios. The system provides a large number of customizable intelligent alerts and reports to notify the user of any discrepancy. The system is based on the three pillars. Pillar 1 regulates the minimum capital requirements for credit risk, market risk and operational risk, large and excess exposures and liquidity requirements.

Pillar 2 is the supervisor review pillar; it regulates the brokerage firms’ internal capital assessment, risk management and governance. Pillar 3 is the market discipline pillar that regulates how information regarding market discipline and how risk management, capital requirements, capital adequacy and other information should be made public.