In the last five years, financial institutions have incurred losses from rogue trading incidents, and have been investigated and fined over allegations of rigging foreign exchange markets and other market abuses.
At the heart of the benchmark manipulation scandals has been the use of chatrooms, instant messaging and email to enable collusion between traders. The use of electronic communication to engage in collusive behaviour has led to increased scrutiny around how financial institutions monitor and control their communications, and how misconduct can be detected using trader surveillance.
As a consequence, the regulatory landscape for surveillance is changing. In addition to the existing FCA market conduct rules and EMSA guidance on real time monitoring, MiFID II and other planned regulation will have an impact on how firms monitor and report on their trading activity and trader behaviour.
Surveillance is becoming increasingly sophisticated, with global regulators having an increased expectation that institutions will conduct holistic surveillance over multiple data sources including trade and order data, electronic and voice communications, and behavioural data in order to identify potential market abuse and misconduct.
We bring expertise and insight into the tactical and strategic solutions that support the Financial Services sector’s growing surveillance requirements. We have worked across a wide range of financial institutions, helping them with their investigations and responses to requests from regulators, and also with their forward looking surveillance solutions.