MillenniumIT, the trading technology firm owned by the London Stock Exchange Group, has entered into a partnership with the Egyptian Exchange (EGX) to provide it with a trading surveillance system.
The new software will enable EGX to proactively and accurately identify abusive behaviour and conduct further investigations to ensure it operates a fair, efficient and transparent market for all its participants.
“To effectively oversee its markets, the EGX must employ a surveillance system that is not only capable of rapidly recognising abnormal trading patterns but is also able to support further investigation of such behaviour, while easily adapting to the changes taking place in the market – demands that Millennium Surveillance is perfectly suited to meet,” said MillenniumIT CEO Tony Weeresinghe, in a statement.
“We are confident this system will be an important asset to EGX in fulfilling its vision of providing an equitable, transparent and high-quality marketplace,” added Maged Shawky, executive chairman of EGX.
Furthermore, Progress Software, a provider of trading software, has enhanced its real-time surveillance capabilities with the launch of a new market surveillance and monitoring accelerator product.
The new tool will enable financial institutions, exchanges and market regulators to detect patterns of abusive or erroneous trading activity and take action to prevent such behaviours in real-time. In addition, the surveillance accelerator will automate the steps required to manage subsequent investigations into trading activity. The product is built on the Progress Responsive Process Management suite, which unites real-time visibility, immediate sense-and-respond and continuous business process improvement capabilities on one platform. This platform will allow for an increased number of features, including improved market abuse pattern detection, integrated workflow, alert management, case management and collaboration.
“The regulatory talk right now focuses on throttling or dumbing down trading technology so regulatory agencies can keep up with the firms they are expected to monitor,” said Adam Honore, research director at consultancy, Aite Group. “Further, while risk managers are seeing more influence in technology internally, many continue to rely on after-the-fact reporting systems. Regulators should instead be pushing real-time monitoring and responsive technology both for themselves and the firms they govern to keep up with trading trends instead of trying to slow innovation.”
“A? massive increase in trading venues and vehicles, including dark ?pools, ECNs, and MTFs, has created a dangerously fragmented market? that is increasingly challenging to police,” added Dr. John Bates, Progress Software’s chief technology officer and senior vice president of corporate development and strategy. “Rogue trading and? fraudulent activity have become increasingly difficult to control.? The goal must be to sense these trades – be they errors or fraud – ?as they are taking place and ideally before they move markets.”