Ever since the marriage of technology and the financial industry came into being, credit risk management systems are more important than ever to the activities of the global financial market. Yes, we’re talking about software that does everything for you right from re-pricing accounts, supporting margining while also being able to accept real-time and intra-day pricing feeds and calculating the results that people can access online or from pre-configured reports.

According to the mandate provided by the NYSE, brokers have to be able to access a sophisticated intraday monitoring system in order to carry out transaction according to specific government regulations, and thus, in meeting these needs these brokerage processing services are able to offer software that not only helps brokers to stay within Federal and Exchange regulatory requirements but also avoid fines and penalties that might arise from not being able to do so.

In speaking of regulatory requirements, there are certain rules that are specific to pattern day traders who is actually executes 4 round-trip trades within any five successive days, with the value of the stock being over 6% of the total value.

And for this, the NYSE rule 431 clearly states that in being a recognized pattern day trader one cannot use the proceeds made from selling his stocks to purchase new security, until three days after the trade is complete.

And this is where brokers and the software they use have to track pattern day traders on a daily basis as a part of the reporting procedure as required by the law.