The product – to be launched by the group’s enterprise subsidiary Samsung SDS Europe – works with the group’s Samsung Galaxy devices, the company said on September 30.
The system can prevent other communication solutions from being installed on a phone, which would prevent an errant trader using WhatsApp or other encrypted messaging systems to evade detection.
Samsung SDS noted that the service had been developed predominantly for financial services firms in light of the revised Markets in Financial Instruments Directive which is set to come into force on January 18.
The new rules widen the scope of employee communications that banks and other trading firms must record, and impose stricter requirements on how these should be monitored in order to prevent market abuse.
Adrian Klingenberg, financial sector sales manager, Samsung SDS Europe said: “It’s keeping a lot of CIOs awake at night. The regulation is quite in depth involves a lot more than what it used to.”
Data recorded through the system is then uploaded into an institution’s central compliance centres, so that it can be searched and analysed, Klingenberg.
He said: “One of the key areas in Mifid II is on monitoring and analytics, so we are really aiming at making it very easy to get access to the raw data.”
The product can also track a user’s movement through Google Maps, identify which other apps they are using on a device and how much data is being used in order to flag up potential irregularities.
The move comes as both young and established technology firms look provide more tools to help financial institutions manage their growing regulatory burden and help regulators spot misconduct. So-called ‘regtech’ has been flagged up as one of the areas with significant growth potential in fintech, as compliance spending in the financial services sector grows.
In a study released on September 29 financial information provider IHS Markit, estimated that the top 40 global investment banks and top 400 asset managers are forecast to spend $ 2.1 billion to meet Mifid II’s guidelines in 2017.
The product also reflects a recent wave of new technology stemming specifically from the need to comply with new rules in Mifid II, which is one of the most far-reaching financial regulations passed in the wake of the financial crisis.
Several startups and large firms have for example focused on providing tools to help the industry deal with new rules in Mifid II on how fund managers can pay for research and corporate access.
The new Samsung SDS product, called Mobile Voice Recording Solution, will be officially launched on October 5.