Buy-side firms are next to feel regulatory pressure for market surveillance, says b-next’s Martin Porter
Martin Porter, global sales director at b-next, says that buy side firms need to consider the implications of increasing regulatory scrutiny of markets.
Due to increasing pressure from regulators, financial market participants have a duty to ensure that their investment and trading divisions operate within the rules set out by national and EU wide regulation. Ensuring that anyone within the firm or its clients are not committing market abuse either through price manipulation in the market or insider dealing, is of paramount importance.
Traditional market abuse surveillance and monitoring has been carried out by sell-side firms for many years using either automated systems built in-house or supplied by vendors like b-next. Buy-side firms have typically not followed this trend believing that market abuse surveillance should be carried out elsewhere in the trading process. As buy-side trading has become increasingly sophisticated over recent years, with ever more complex asset classes and the use of algo and HFT trading, this trend looks to change.
High profile market abuse and insider dealing cases involving the buy-side have recently hit the headlines. Perhaps the most famous case… Read more on www.investmenteurope.net