The turbulence in the stock market is causing a rapid rise in the number of compliance-relevant duplicates. During the 2020 corona crisis, the number of stockholders in Germany increased by more than 25 percent in a single year. Bank staff are also involved in stock trading but often trade via third-party banks rather than through their employer.
According to the German Securities Trading Act (WpHG), the latter must be informed about staff transactions. One established method is the duplicates procedure, in which the custodian bank sends a copy of the securities transaction’s documentation to the employer bank. However, what used to work well as a manual process has shown itself to be a showstopper during the latest turbulence in the stock market.