July Edition 2023

Droit – Pioneers in automated intelligent decision-making and computational law


Over the past few years, there has been much discussion regarding the potential of automated-decision making (‘ADM’) systems powered by mechanisms of computational intelligence such as machine learning or deep learning (commonly referred to as ‘Artificial Intelligence’ or ‘AI’). To date, such forms of (big) data analysis are most prominently relied on by the private sector, such as the search algorithms used by online search engines or the recommendation algorithms used by e-commerce and entertainment services platforms. These forms of data analysis in essence offer three main benefits, namely the speed and efficiency of decision-making as well as an ability to detect correlations that may be undetectable to the human brain. The efficiency, speed and correlations offered by these forms of data analytics are also appealing in the public sector. Indeed, various products of computational learning are already being used in administrative processes and will likely become much more prominent in future years.

Droit builds mission-critical, breakthrough products to advance global regulatory compliance and real-time controls. Droit partners with leading global financial institutions to create forward-looking operational and regulatory solutions within the ever-changing financial landscape. With locations in New York, London, Sydney, and Singapore, Droit continues to broaden its industry reach and offer clients breakthrough products enabling them to take the next right action.

Adept Platform

Droit Adept is the innovative, patented platform that drives intelligent decision-making in a complex rule-driven landscape. The Adept platform provides an implementation of regulatory rules reflecting industry consensus. Institutions rely on Adept to provide solutions for pre-trade and post-trade controls, evaluating the permissibility of transactions, compliant regulatory reporting, and more. Adept generates decisions directly from digitized rules, regulations, and internal policies, visually represented in intuitive logic diagrams and linked back to the original sourced text. This complete traceability empowers users to act right with confidence. Adept operationalizes laws, rules, and policies to advance compliance within existing systems. Droit continuously monitors regulatory and policy changes by updating its platform with each regulatory change or new interpretation. The Adept platform provides clients with the consensus view as to how rules and regulations are applied. To verify decisions, Adept generates a logic model with traceable pathways linked to the original source text. This transparency into the logic allows for enhanced clarity, increased operational efficiencies, and a repeatable, defendable process.

Client Readiness

Client Readiness from Droit enables financial institutions to understand their commercial possibilities and validate readiness to engage and trade. It quickly provides reassurance and evidence that company-specific compliance and regulatory criteria has been properly applied across clients and services. Regulators are increasing expectations and demands on financial institutions, one of which is that preventative and detective controls should be in place much earlier in the client trade lifecycle – ideally, prior to the product discussion and product offer stage. This of course adds to the cross-functional team and system challenges associated with determining, with clear evidence, client readiness. This includes clarity on compliance obligations and instant feedback on status to help navigate the right clients to the right products. Key features include:

  • Continuously updates with newly versioned logic to match policies as they evolve and leverages current reference data and taxonomy.
  • Provides a central point for cross-functional teams to access and apply accurate client readiness policies.
  • Enables full transparency of the opportunity to transact or trade status, with information instantly available on demand for clear yes or no decisions, at all levels.
  • Empowers your salespeople by giving them the confidence and reassurance to progress and personalize client engagement based on accurate, up-to-date, and relevant policies.
  • Built on Droit’s patented Adept platform, automates the decision-making process with full traceability to consistent, centralized business rules that cover both the buy-side and sell-side.

Point of Trade

Make real-time decisions based on regulatory, market infrastructure, and policy rules and prepare for next right action. Point of Trade from Droit provides users a robust solution to make transparent real-time decisions based on comprehensive knowledge of rules for permissible trading, easily integrated into trading infrastructure via API. Financial institutions need instant access to the most up-to-date regulations and obligations to deliver a correct decision of whether to trade or not trade. Existing processes can often be time-consuming, costly, manual, and complex. These pose a risk for errors and operational inefficiency. Enabling relevant teams to understand, track, and trace required obligations for a trade, automates trading decisions, and evidence transparent decision-making can be challenging. Built on Droit’s patented Adept platform, automates the decision-making process and provides full transparency and traceability through each logic step to the regulatory source text. Makes decisions automatically, surfacing all necessary information needed to understand whether the proposed transaction is permitted and, if so, what obligations must be met.

Meet the Visionary Leader Upfront

Brock Arnason is the Founder and Chief Executive Officer of Droit.  Prior to founding Droit, Brock was an Executive Director of Fixed Income E-Commerce at Morgan Stanley. He was the global head of product for Matrix, Morgan Stanley’s client portal, and led SEF strategy and Dodd-Frank compliance programs across ISG. Prior to Morgan Stanley, Brock worked at UBS as a technology leader for credit and interest rate derivatives.

Brock holds a Master of Engineering and Bachelor of Science in Engineering Physics from Cornell University and an MBA from the University of Chicago.

"The Adept platform’s patented technology enables clients to confidently evaluate decisions that lead to the right action."