b-next, a specialist provider of market abuse surveillance, insider dealing and compliance software solutions invited 14 senior compliance officers to gather for a discussion about some of the most important issues on their agendas with regard to market and trading surveillance. Uncertainty within the industry about the ESMA guidelines dominated the discussion whilst other matters including scalability and boundaries of system implementation also emerged at the forefront of compliance officers concerns.
As the date in which to meet the ESMA guidelines draws closer, compliance officers believe that the 1st May is a clear indication that the regulators are moving towards stricter regulation of firms’ surveillance systems. It is widely expected that the guidelines will be the basis of standards that will be required under MIFIR and MAR within the next one or two years.
Technological concerns are not overshadowed by regulatory pressures. Complexity and the implementation of systems across the EU borders and outside the EU, multiple venues and multiple asset types, present communication and consolidated review problems. Legacy systems inherent within some firms are not designed for timely extensions and modifications. As technology and regulation continue to evolve, it is important to have a system in place which can be expanded on a modular basis to support the latest requirements.
It is general consensus amongst the industry that expenditure on surveillance systems is inevitable as regulatory pressure increases. However it was also agreed that the monitoring and analysis of trading activity can also provide a positive impact on a firms risk management and revenue generation therefore the investment in surveillance technology can have a positive impact on a firms “bottom line” which would help justify budgeting for a solution.
Simon Bates, Director, Bryok, advisors to financial and energy markets, notes “The ESMA Guidelines’ due date will come and go. Market Abuse will continue unabated. The problem is probably as sizable as the illegal global drugs trade, with our pension funds the victim. I call upon senior influential figures in this industry, who care, to work with us to solve this problem once and for all. The technology is ready and able. Only by working collectively we can restore the integrity and reputation of this industry.”
Martin Porter, Business Development Director, b-next, says “From this gathering it is clear that the regulators and firms need to work closely to establish the most effective and necessary measures that will ensure they are operating with surveillance systems of the highest standard. b-next focuses on working closely with its clients to generate understanding and deliver monitoring solutions to the industry. This roundtable was a great success and we look forward to hosting more valuable conversations with the key players in our industry in the future.”
b-next will be publishing the outcomes and themes of the roundtable in further detail in May.
FTSE Mondo Visione Exchanges Index:
London's Senior Compliance Officers Reveal ESMA Is One Of The Biggest Issues In Market And Trading Surveillance - ESMA Is An Indication Of Strict Market And Trading Surveillance Regulation To Come - Complexity And The Implementation Of Systems Cross Border And Asset Class Present Problems - Investment In Surveillance Technology Can Have A Positive Input On The ‘Bottom Line’
Date 23/04/2012