In the past six years, financial insititutions have paid fines and settlements for a range of market abuse issues including rigging and manipulation in the foreign exchanges markets, benchmark manipulation and rogue trading.
At the heart of the scandals has been a lack of integrity demonstrated by individuals when left to their own devices. This has led to increased scrutiny around the plans and controls financial institutions have in place to prevent and detect market abuse and broader misconduct.
As a consequence, the regulatory landscape for market abuse is changing. The Market Abuse Regulation (MAR) and Senior Managers Regime (SMR) will have an impact on how firms are thinking about their conduct agenda, behaviour of traders and other client facing staff, and also widen the scope of existing regulations to new market behaviours, products and platforms.
Trader surveillance is becoming increasingly sophisticated, with global regulators having a higher expectation that institutions will conduct holistic surveillance over multiple data sources including trade and other data, electronic and voice communications, and behavioural data, in order to identify potential market abuse and misconduct.
In the Market Abuse space we have worked with a wide range of financial institutions, helping with investigations, control assessments and responses to regulatory requests, and also advising on the future of market abuse regulation. In addition we can bring expertise and insight into the tactical and strategic solutions that support the financial services sector’s growing market abuse prevention requirements.