The FCA has been openly critical of surveillance system calibration and configuration. They disapprove of market participants’ tendency to implement vendor-supplied systems using ‘out of the box’ and ‘industry standard’ settings to calibrate their alert parameters. Don’t fall into this trap!
ESMA published six opinions on position limits regarding commodity derivatives under MiFID II/MIFIR. These confirm the position limits proposed by the governing NCas, so market participants can now set their trading, position management, and surveillance systems accordingly.
With the regulatory focus firmly on deterring market abuse, new exemplars of manipulation are being defined for market participants to detect. Can your surveillance system be easily configured to pick up these new cases?
After 2018’s rush to introduce compliance with new regulations such as MiFID II and GDPR, what will 2019 bring for compliance and IT systems managers? Probably the end of any ‘amnesty’ period for poor compliance, and greater focus on tackling algorithmic trading and market abuse.