With MAD II/MAR trading firms all over Europe need to closely monitor their own order flow regardless if routed via the companies' own memberships or a third party membership like a prime broker's.
e-Trading Compliance Monitor (ECM)
This system was designed to act as a standalone hub to merge the order flow of multiple trading applications into one single unified order pool. The goal is to provide cross-systems surveillance in times of regulatory oversight authorities like ESMA and complex guidelines like MAD II/MAR.
The application can be used to cover order flow surveillance in accordance with BaFin-Rundschreiben 06/2013 »Anforderungen an Systeme und Kontrollen für den Algorithmushandel von Instituten« and »Final Report ESMA’s technical advice on possible delegated acts concerning the Market Abuse Regulation«.
Define multiple reports
Compliance officers can define multiple reports to cover necessary regulatory checks like:
- Ping orders, painting the tape, phishing Detection if someone is entering relatively small orders to discover possible hidden orders.
- Quote stuffing Detection if someone is entering a large number of transactions to fake activity and/or small platform operation.
- Momentum ignition, pump and dump, trash and cash, colluding, advancing the bid Detection if someone is entering orders to start or accelerate a price trend.
- Layering and spoofing, placing orders with no intention of executing them Detection if someone is faking orders on one side of the book to execute on the other side.
- Wash trade, improperly matched orders Detection of a crossing between one or more parties.
- Inter-trading venue manipulation Detection of price manipulation on seperate venues.
- Marking the close Detection of price manipulation at certain market events.
Alone or in combination with the acclaimed and widespread TradeBase MX Pre-Trade Risk Engine the ECM covers all of the necessary requirements for banks, brokers and trading firms.