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Unveiling Data in Market Surveillance Systems

SOC2 compliance risk management

In an era of stringent regulatory frameworks, compliance is non-negotiable. When it comes to adhering to market abuse, the market surveillance system has become more embedded in the firm’s technical infrastructure. The beating heart of this system is the trading and market data. In this blog, we delve into the importance of this data and how KRM22 ensures it flows to support the compliance team.

At the core of market abuse monitoring is the need for a comprehensive understanding of market dynamics. Clearly without quality data, compliance teams are unable to have a panoramic view of trading activities, price movements, and order flows. This comprehensive market insight enables surveillance systems to identify anomalies, detect potential market abuses, and ensure fair and transparent trading practices.

Market Surveillance not only integrates with standard back office systems, ensuring stable data mappings, but also takes feeds from market data providers such as Barchart, Lexis Nexus, Refinitiv and Bloomberg. By standardising this data, we reduce the time to go live as well as providing the highest quality data.

Financial markets are dynamic and subject to constant evolution. Having a quality source of data enables market surveillance systems to adapt and evolve alongside market changes. Market Surveillance’s Sandbox functionality allows firms to adjust parameters and run against historical data to see how alerts would have fired against new conditions. This adaptability is crucial for staying ahead of emerging risks and compliance challenges.

As we move to a more AI driven compliance industry, market surveillance systems are becoming more reliant on historical and real-time data to recognize patterns and detect anomalies that may indicate market abuse or fraudulent activities. The more diverse and extensive the dataset, the more adept the surveillance system becomes at identifying subtle deviations that may elude human observation. The Market Surveillance team at KRM22 is constantly looking at how we can use the standard data sets available to enhance the compliance team with “round the corner” investigative techniques.

In conclusion, the role of data in market surveillance systems cannot be overstated. It serves as the cornerstone, providing the necessary insights, adaptability, and accuracy required to navigate the complexities of financial markets. As these systems continue to evolve, fueled by advancements in technology and data analytics, the synergy between data and market surveillance will play an increasingly pivotal role in safeguarding the integrity of global financial ecosystems. At KRM22 we put data at the forefront of our design methodology, and are using it to drive the next generation of Market Surveillance.

Speak to us about how we can help make sense of your trade and market data.