Governance & Program Info

Anomaly Detection & Market Surveillance — Governance

Cross-builder institution context and per-item ownership, due dates, status, and next actions for the governance-relevant checklist items in this builder.

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Checklist governance
Items (0 of 16 marked complete)
Annotate ownership, due date, status, and next action. Items on the left come from the builder's governance / compliance phases.
05 · Governance & Compliance
Complete SR 11-7 documentation for every detection model
required
Purpose, data lineage, assumptions, limitations, known failure modes, validation results — all seven SR 11-7 elements per model, including unsupervised and GNN components.
05 · Governance & Compliance
Independent model validation
required
Second-line or external independent team validates logic, data, assumptions, and performance claims — including the unsupervised and ensemble arbiter.
05 · Governance & Compliance
Ongoing model performance monitoring plan
required
KPIs, monitoring frequency, alert thresholds, escalation paths for performance degradation. Required under SR 11-7 and SR 15-18.
05 · Governance & Compliance
Change management and versioning for detection models
requiredtrinidy
Who approves model updates, what tests gate promotion, how changes roll back, and what audit trail is produced.
05 · Governance & Compliance
SEC Rule 613 (CAT) reporting integrity
required
All reportable events accurately, timely, and completely reported to the Consolidated Audit Trail. Surveillance findings must reconcile to CAT.
05 · Governance & Compliance
FINRA Rule 3110 / NASD 3010 supervisory system evidence
required
Documented evidence the supervisory system is reasonably designed — including why the chosen detection models are appropriate for the firm's business.
05 · Governance & Compliance
FINRA Rule 3310 / BSA AML program evidence
required
Written AML program, independent testing, designated BSA officer, ongoing training, risk-based customer due diligence.
05 · Governance & Compliance
MiFID II Art. 17 algorithmic-trading surveillance
required
For EU-regulated firms: pre-trade controls, kill-switch, annual self-assessment, and evidence that surveillance catches market-abuse typologies specified in MAR.
05 · Governance & Compliance
EU Market Abuse Regulation (MAR 596/2014) typology coverage
required
Evidence that surveillance covers the MAR-specified typologies: spoofing, layering, marking the close, wash trading, abusive squeezes, insider dealing, unlawful disclosure.
05 · Governance & Compliance
SEC 8-K Item 1.05 cyber disclosure process
required
Documented process for detecting, escalating, determining materiality, and filing within 4 business days. Effective Dec 18 2023 — enforcement actively in progress.
05 · Governance & Compliance
EU DORA (Jan 17 2025) ICT risk management and incident reporting
required
Register of ICT contracts, TLPT penetration testing for systemic firms, major ICT incident reporting within prescribed windows.
05 · Governance & Compliance
NIST CSF 2.0 mapping
recommended
NIST Cybersecurity Framework 2.0 (effective 26 Feb 2024) added the "Govern" pillar. Map our program to all six functions — 81% of US financial institutions report partial/full adoption.
05 · Governance & Compliance
OCC Heightened Standards alignment
required
For large US banks: independent risk-management framework, three-lines-of-defense, risk-appetite statement covering model and AI risk.
05 · Governance & Compliance
EU AI Act high-risk system obligations
required
Most surveillance AI is high-risk under the EU AI Act — technical documentation, human oversight, logging, transparency, and post-market monitoring obligations.
05 · Governance & Compliance
Fair-surveillance / disparate-impact assessment
recommended
Does our anomaly detection disproportionately flag any protected class (directly or via proxy)? Document the assessment and mitigation.
05 · Governance & Compliance
Regulator-facing audit trail
requiredtrinidy
Every alert, disposition, model version, and escalation decision retrievable on demand for SEC / FINRA / FCA / BaFin examination.