Post-Trade Compliance Monitoring
Scheduled and event-driven portfolio compliance checks after trade settlement, corporate actions, and market movements.
Active vs. passive breaches
An active breach results from a deliberate trade (for example, PM overrides a soft limit). A passive breach results from external events — market price movements, credit rating downgrades, corporate actions, or investor redemptions changing portfolio weights without any trade.
Post-trade compliance triggers
| Trigger | Description | Frequency |
|---|---|---|
| Scheduled daily run | Full compliance re-check of all fund positions after NAV calculation | Daily (post-NAV batch) |
| Trade settlement | Compliance re-evaluated when T+n settlement updates positions | Event-driven |
| Corporate action processing | Stock splits, mergers, spin-offs may change issuer concentrations | Event-driven |
| Price movement | Significant intraday price moves can shift asset allocation weights | Event-driven (threshold-based) |
| Credit rating change | Moody's/S&P/Fitch downgrade may breach credit quality floors | Event-driven (data feed) |
| Investor redemption | Large redemptions change portfolio weights without trading | Event-driven |
| Benchmark rebalance | Benchmark index changes can affect relative-to-benchmark limits | Quarterly / ad-hoc |
Passive breach detection
Passive breaches are detected during the scheduled daily compliance run. Asset Atrium compares current portfolio exposures (post-NAV) against all active mandate rules. Breaches caused by market movements or external events are classified as passive and subject to different remediation timelines than active breaches.
Remediation timelines
| Breach Origin | Severity | Remediation Deadline | Escalation |
|---|---|---|---|
| Active (PM trade) | Hard | Blocked at pre-trade — no remediation needed | N/A |
| Active (PM override) | Soft | 5 business days to return within limits | CCO at day 3 |
| Passive (market move) | Soft | 10 business days to return within limits | CCO at day 7 |
| Passive (credit downgrade) | Hard | 30 days (regulatory grace period where applicable) | CCO + board at day 15 |
| Passive (corporate action) | Varies | Next rebalance window or 10 business days | PM + compliance review |
Daily compliance report
After each scheduled post-trade compliance run, Asset Atrium generates a Daily Compliance Status Report containing:
- Fund-by-fund summary: total rules checked, passed, breached (active/passive)
- New breaches detected since prior run
- Outstanding breaches with aging (days since detection)
- Breaches approaching remediation deadline
- Overrides in effect with remaining approval validity
UCITS passive breach rules
Under UCITS regulations, passive breaches of the 5/10/40 issuer concentration rule must be reported to the fund's management company within 1 business day. If the breach is not remedied within a reasonable timeframe, regulators (for example, CSSF for Luxembourg funds) must be notified. Asset Atrium automatically flags UCITS-specific breach reporting obligations.
Integration with breach manager
All post-trade breaches are automatically forwarded to the Breach Management module for lifecycle tracking. The breach record includes the triggering event, affected rule, current vs. limit values, and recommended remediation action.
Optimizing post-trade runs
For large fund families (500+ funds), post-trade compliance can be partitioned by processing zone. APAC funds are checked immediately after APAC NAV batch; EMEA and Americas follow their respective NAV windows. This prevents compliance bottlenecks during the global EOD cycle.