Thought Leadership

Trade Surveillance Utility

RECENT STUDIES SUGGEST THAT DESPITE REGULATORY PUSH FOR MORE OVERSIGHT, NON-COMPLIANT TRADING BEHAVIOR IS MORE PREVALENT THAN PREVIOUSLY THOUGHT* . CURRENT BANK TRADE SURVEILLANCE EFFORTS HAVESTRUGGLED TO DELIVER RELIABLE DETECTION DESPITE SIGNIFICANT OPERATING COSTS, AND COMPLIANCE PROFESSIONALS ARE OVERWHELMED BY FALSE POSITIVES AND DISPARATE TOOLSETS.

THIS PAPER SETS OUT AN INNOVATIVE APPROACH, APPLYING THE LATEST TECHNOLOGIES TO TRADE SURVEILLANCE TO DRAMATICALLY IMPROVE QUALITY.

FURTHER, INDIVIDUAL FINANCIAL INSTITUTIONS SHARE IN THE INDUSTRY’S OVERALL REPUTATION, IT IS IN THEIR COMMON INTEREST TO REDUCE AND ELIMINATE NON-COMPLIANT BEHAVIOR. EACH HEADLINE DESCRIBING A SCANDAL REFLECTS NEGATIVELY ON ALL BANKS, NOT ONLY THE BANK DIRECTLY INVOLVED. THEREFORE, THE PAPER RECOMMENDS BANKS ADOPT A SHARED APPROACH, INVESTING IN A COOPERATIVE UTILITY TO IMPLEMENT A CROSS-INDUSTRY SOLUTION, SHARING INSIGHTS AND BEST PRACTICES AS WELL AS THE COSTS AND RISKS, TO ACHIEVE THE GOAL OF MORE COMPREHENSIVE TRADE SURVEILLANCE.

Trade Surveillance Utility