RegTech: Market abuse surveillance

Developed in partnership with our clients, our managed service pairs leading surveillance technology with our experienced analysts and consultants, to manage market abuse surveillance on your behalf.

Increasing pressure to improve monitoring

Expectations around market abuse controls, both from the regulator and from the industry, continue to rise. Almost all large firms are now using an IT solution for monitoring market abuse – whether they’re building their own tools or buying off-the-shelf. But from talking to clients we’re finding that this kind of product is often too expensive for smaller firms, while relying on manual monitoring means they’re exposed to an ongoing compliance risk.

Our innovative surveillance service will alert you to suspicious transactions and patterns of behaviour which are often impossible to detect with traditional spot checks and reviews. Furthermore using a trusted third party adds independent credibility and assurance both for you, your regulator and for those you do business with.

Bovill’s managed market abuse service model

Bovill have collaborated with KRM22, a market-leading provider of flexible monitoring software for detecting market abuse. Together we have expertise in both the technology and the practical day-to-day monitoring which comprises an effective market abuse monitoring approach. Our team have worked with a broad range of clients on the development of market abuse risk assessments, defining and implementing controls, and overseeing day-to-day surveillance activities.

We will help you with getting the right data in place, parameterising your alerts, and then handle the triage, investigation and escalation of the outputs.

How does it work?

Transferring data securely

Every day we will consume the required trade and market data which underpins the market abuse monitoring. Bovill will operate a secure data room to ensure the safety and integrity of client data.

Setting the right parameters

The ability to ‘parametise’ alerts at a detailed level is one of the reasons the KRM22 system is so successful. At the start of the process we would work with you to set appropriate alerts, identify appropriate trade populations and set thresholds. We would then re-calibrate on an ongoing basis to reduce the number of ‘false positive’ alerts and maximise efficiency.

Assessing which alerts require investigation

With the system in place, every day the Bovill team will run their triage process, identifying known false positives, and escalating new risks based on both the parameters set in the system and the knowledge and experience of the monitoring team.

Investigating ‘red’ alerts

Bovill will use a combination of market data, news and contextual information to conduct detailed investigations. We will then establish a process with you to escalate issues and provide you with the data you need to understand your risks.

Recommending and drafting STORs

Our expert team can also identify cases which are candidates for submission as a STOR and help with the STOR drafting process.

Reporting our findings

At the end of each day we will generate a report outlining numbers of alerts, how they were handled and giving you detailed records of triage and investigations. We will also provide regular management information on our findings and trends over longer periods.

Ongoing market abuse re-assurance at an affordable rate

Bovill’s market abuse surveillance service is available across the UK, US, Singapore and Hong Kong. Our charging structure gives clients access to top-end technology at a preferential rate, while also providing experienced analysts and consultants who perform the monitoring activity on your behalf.

Get started

Get in touch with our team and find out more.