SunGard offers ESMA-compliant monitoring software
provider SunGard has updated its Protegent market surveillance solution to help
regulators, trading venues and brokers meet European Securities and Markets
Authority (ESMA) guidelines on market abuse.
Protegent is designed to
allow users to monitor, detect and resolve market manipulation and insider
trading activities. New features include a rules library that supports
compliance with ESMA’s ‘Systems and controls in an automated trading
environment for trading platforms, investment firms and competent authorities’
guidelines and other regulatory changes.
The ESMA guidelines cover the use of electronic
trading systems, including algorithms, by investment firms, the provision of
direct and sponsored access. Trading platforms are required to monitor in real
time their electronic trading systems.
They should also keep appropriate records and
hold regular reviews to ensure problems are dealt with effectively. In addition
algorithms must comply with MiFID and must be robust enough to ensure
continuity and regularity in the performance of investment services and
activities in an automated trading environment.
Protegent provides real-time
cross-market surveillance by analysing orders, trades, positions, historical
data and market data from multiple trading venues and regions. Users can
analyse trading patterns across single or multiple asset classes and trading
venues. The product also helps firms detect and act on specific behaviours
outlined by ESMA, including suspicious manipulative activities such as quote
stuffing, momentum ignition, layering and spoofing.
“The need for improved
surveillance is largely being driven by the trend towards automated trading and
the migration of more asset classes onto exchanges,” said Rebecca Healey,
senior analyst at financial research firm TABB Group. “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.”