Trade Surveillance Compliance

Trade surveillance compliance is gaining ground as market abuse is a growing concern for financial institutions, with global regulators increasing the number of stringent regulations governing the securities market.

CONNECT WITH AN EXPERT

In 2019 alone, regulators levied fines of approximately USD1.78bn for as many as 160 individual incidents in the US, UK and several countries in Asia Pacific. Regulators expect companies to conduct surveillance on their trading business to protect themselves them from fraudulent activity. Companies are likely to struggle initially to keep up with the rapidly changing regulations as they hire the necessary skilled manpower, which would increase their operating costs.


Trade Surveillance Compliance Support:
 

We at Acuity Knowledge Partners have the domain expertise to help our clients (both buy-side and sell-side firms) to transform their operating process at a lower cost. We focus on reducing 20-40% of our clients’ operating costs, without compromising the quality of deliverables. We help our clients not only with tradable securities, but also with surveillance technologies such as SMARTS, Actimize and BTCA.

Our offerings to clients

Integrating models in trade surveillance

Reviewing and monitoring exceptions

Reporting potential breaches

Re-validating or enhancing models

TYPES OF MODELS

Front running:

Tap to flip

  • Identifying and reporting all proprietary account trading activities executed before receiving client orders and the information being made public

Wash trading

Tap to flip

  • Identifying and reporting trading between parties (no change in beneficial ownership) to inflate market volumes

Insider trading

Tap to flip

  • Identifying and reporting fraudulent trading conducted with access to price- sensitive information

Spoofing

Tap to flip

  • Identifying and reporting on one or more non-bona fide orders being entered into on one side and executing those orders on another side after cancelling the non-bona fide orders to obtain a favourable price

Thank you for sharing your details

Share this on