The Importance of Trade Surveillance at BayernLB
New software for increased Digitalization and Automation at Bayerische Landesbank. Prevention of Market Abuse and Insider Trading
About BayernLB
As one of Germany’s leading commercial banks, BayernLB builds strong relationships with corporate customers. In the mortgage sector, it accompanies its customers throughout the value chain, both in Germany and in selected foreign markets. It is the principal bank for the Free State of Bavaria and the central bank for the Bavarian Sparkassen. As a tech bank, DKB provides an outstanding customer experience and state-of-the-art digital solutions. BayernLB offers its customers a wide range of options for sustainable capital investment through its asset management companies.
Process Optimization
Prevention and Detection of Market Manipulation and Insider Trading
Monitoring securities trading is a major headache, not only for banks and financial institutions, but also for the supervisory authorities. The number of securities transactions and suspicious activity reports continues to rise. Any company that operates in the financial sector is obliged to take appropriate steps to prevent market abuse. The regulatory pressure on the financial sector is growing and requirements can no longer be met by using conventional methods.
Intelligent automation and advanced technology are part of the solution. The case study on how the MAID module from the ACTICO Compliance Suite was introduced at BayernLB sheds light on how these challenges can be overcome.
Long-term compliance solution
The MAID Module from the ACTICO Compliance Suite increases Automation in Transaction Screening
BayernLB decided it was time to overhaul its ageing compliance monitoring system and identified ACTICO as the right partner to switch to a new system. By implementing the MAID module (Market Abuse and Insider Dealing Detection) from the ACTICO Compliance Suite BayernLB managed to increase automation in their transaction screening. MAID uses automated monitoring to check every securities order processed by the bank against scenarios that indicate market manipulation, breaches of rules or insider trading. If an anomaly is detected, the system automatically triggers a clarification.
Along with providing market-tested standard scenarios, one of the module’s key benefits is that it allows rules and checks to be individually defined and enhanced in line with the customer’s specific requirements.
Additional Management of Watch and Restricted Lists with the ACTICO software
The ACTICO software also helps to facilitate the process of digitalizing duplicates at BayernLB. Dublicates are paper copies of orders and transactions of employees processed via third-party institutions. The collected data runs through the rules and gets checked against the watch and restricted lists.
"Switching to the ACTICO software has helped us make major improvements to how we prevent and identify market abuse."
Petra Lauber & Thomas Hanke, Project Managers, Corporate Center Compliance Governance, BayernLB
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