The Compliance Suite module Market Abuse and Insider Dealing Detection (MAID) monitors the legal requirements and internal company rules for securities trading in order to detect and prevent market manipulation and insider trading. In addition to manipulations, such as wash trades, matched orders and snake trading, MAID focuses on insider trading practices, such as front and parallel running. Other application scenarios for our software are monitoring of employee transactions, trade restrictions and other abusive stock exchange practices like churning and parking. MAID is designed to identify undesirable stock broking quickly before claims for compensation or reputation damages occur.
In addition to customer transactions, proprietary transactions of the bank and its employee transactions are monitored. Even transactions at foreign institutes can be recorded.
Transparent rules that are deposit in the system control the monitoring. Compliance Officers can redefine and customize rules to be current and follow internal guidelines.
MAID delivers a set of scenarios that can be individually customized. In addition, the bank can customize scenarios of received transactions that must be clarified.
Electronic workflows facilitate clarification. For each hit an electronic form for evaluation and documentation is automatically generated.
Besides standardized analysis MAID offers versatile options to make unique assessments of trades and holdings.
All investigations are fully documented. Test patterns used are traceable for revisions since they are modeled as graphical business rules.
In addition to your internal requirements, regulatory requirements are met: MAD II
(2014/57 EU), MAR (596/2014) and the FINMA circular 2013/8.
Complex tests are automated and done without manual intervention. This not only improves the quality of the results but also relieves your staff of routine manual tasks.
Graphically modeled test scenarios and configurable studies allow individual adjustments and therefore improve monitoring.
Rules for monitoring are modeled graphically and can be easily traced and changed independently by compliance officers.
High volumes of financial transactions are monitored safely and consistently with this powerful software.
MAID can be used as a standalone module or seamlessly integrated into our Money Laundering Detection System (MLDS).
Companies use our software and expertise in compliance to monitor transaction data. Using our ACTICO Rules technology to define rules, they’re able to automate the decision-making process for financial transactions. Our compliance module MAID not only detects behavior patterns that indicate attempts to manipulate the market, it also identifies abusive practices. Some examples of this are disproportionate shifting of a customer’s portfolio without apparent economic purpose (churning) or placing securities with little demand in a portfolio, especially after an unsuccessful IPO (parking).