Trade surveillance systems

Market integrity requires fair and orderly behaviour. Specific software may offer a tool that allows market participants to contribute to a fair and orderly market. Market surveillance software supports the prevention and detection of market abuse.

Key benefits of market monitoring software are to detect abusive practices, including insider trading and market manipulation, to visualise the transactions which trigger an alert, to configure alert tolerances to fit one’s business and minimise false positives, and to benefit from a library of historic cases.

An alert dashboard could be very supportive, for instance, featuring a traffic light alert mechanism with adjustable thresholds. This would guide users effectively through the identified patterns down to a transaction level. Process integration could result in an analysis cockpit which supports the investigation and processing of suspicious activity and the generation of reports. Some systems even have an analysis replay tool. This allows for historical trading and analyses results by means of a reconstruction within a user-defined time window.