Bank traders can expect to face tougher sanctions as they sign up to more detailed guidance on acceptable trading practices, according to a report on market surveillance.
Market surveillance specialist Ancoa has published a report from its ‘Surveillance 2015’ panel that brings together market practitioners and regulators to discuss market issues.
The report indicates that draft rules published in the UK by both the Prudential Regulation Authority and the Financial Conduct Authority will bring together all senior managers in an institution to sign up to a ‘statement of responsibilities’.
Under this statement it will be easier to identify the individual in control and thus facilitate regulatory action against the individual guilty of misconduct, as well as those responsible for enforcing the relevant regulations.
The report also provided further details of new technologies being used to enforce new market surveillance regime. Using new technologies, regulators will be able to pull together data across trading venues allowing them to identify possible breaches such as layering, spoofing and gaming.