The importance of trade surveillance

Challenge

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 Capital market compliance solution from ACTICO was introduced at BayernLB sheds light on how these challenges can be overcome.

Solution

The ACTICO Capital Market Compliance Solution 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 ACTICO Capital Market Compliance Solution BayernLB managed to increase automation in their transaction screening. The softare 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.

Additional management of watch and restricted lists

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.

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.