SunGard has added to the capabilities of its Protegent solution suite to help regulators, trading venues and firms monitor, detect and combat market manipulation and insider trading activities.
Protegent’s new features include a rules library that supports compliance with the European Securities and Markets Authority’s (ESMA) guidelines on systems and controls in an automated trading environment for trading platforms, which are aimed at investment firms and authorities.
The solution suite supports the ESMA goal of real-time, cross-market surveillance, according to SunGard.
It analyses orders, trades, positions, historical data and market data from multiple trading venues and regions in real time, while users can analyse trading patterns across single or multiple asset classes and trading venues.
ESMA has outlined specific behaviour that Protegent can help users to detect and act on, according to SunGard. This includes suspicious manipulative activity such as ‘quote stuffing’, ‘momentum ignition’, ‘layering’ and ‘spoofing’.
Rebecca Healey, a senior analyst at research and advisory firm TABB Group in London, said: “The need for improved surveillance is largely being driven by the trend towards automated trading and the migration of more asset classes onto exchanges. Technology like SunGard’s Protegent can help firms comply with the latest rules, scale for increased trading volumes and monitor activity across regulatory jurisdictions, regions and asset classes.”
Steve Sabin, the chief operating officer of SunGard’s Protegent business unit, said: “It’s crucial that trading participants establish a comprehensive trade monitoring process in order to adhere to regulatory requirements such as ESMA’s latest guidelines, and minimise the regulatory risk involved in trading activities while protecting their reputation. SunGard’s Protegent helps customers identify high risk behaviors that require compliance reviews and respond quickly in advance of and during regulatory and legal inquiries.”
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