SOC2 compliance risk management

The observations in FCA’s latest Market Watch shed light on the challenges firms face in effectively monitoring market activities.

The cases outlined by the FCA are not unfamiliar to us. In fact, we’ve encountered similar scenarios in the past, and we’ve taken proactive steps to address them. We continuously monitor market trends and regulatory developments, allowing us to anticipate and mitigate potential issues before they escalate. By staying ahead of the curve, we ensure that our clients benefit from a surveillance system that is always up-to-date and effective.

We understand the importance of ensuring the accuracy and reliability of our system, which is why we employ the following strategies:

  1. Conduct extensive regression testing.
  2. Maintain a dedicated User Acceptance Testing (UAT) environment.
  3. Offer users an integrated sandbox environment for light-testing of parameters with production data. This allows users to test their calibrations on the fly with production data.
  4. Continuosly make improvements and address any gaps that arise.

This multi-layered approach to testing ensures that our system performs flawlessly under real-world conditions, giving our clients the confidence they need to trust in our solution.

 

For more information contact our sales team.

While we already have a “Marking the Close” alert which monitors closing period activity, the new Closing Lookout Alert is a powerful enhancement to our trade surveillance platform, offering users additional flexibility to calibrate the monitoring of the trading activity during the closing period of a market.

Key Features

Customizable Time Periods: Users can customize the closing, pre-closing, and post-closing periods according to their specific requirements. This flexibility allows for tailored monitoring based on individual market dynamics.

24/7 Coverage for Crypto Markets: In recognition of the continuous nature of cryptocurrency markets, our Closing Lookout Alert supports crypto markets by enabling users to select a proxy closing time, ensuring effective surveillance of crypto ETFs.

Regulatory Context

Our Closing Lookout Alert aligns with regulatory guidelines set forth in Regulation (EU) No 596/2014, also known as the Market Abuse Regulation (MAR), ensuring our customers meet compliance requirements. This alert directly addresses the practices outlined in MAR, including:

Concentrated Trading: Monitoring of trading activity during the closing period to detect any abnormal concentration of trades.

Price Movements: Observing price movements in conjunction with trading volume to identify potential manipulative behavior.

The Closing Lookout Alert exemplifies our dedication to innovation and regulatory compliance, providing an essential tool for detecting and deterring market abuse. With the introduction of Digital Asset ETFs trading in January 2024, our customers are equiped with the ability to monitor trading actrivity during the closing period, safeguarding fair and orderly markets.

 

For more information contact our sales team.