Market operators, investment firms may have to re-architect their systems to comply
By Stefan Hendrickx, founder and
executive director, Ancoa
On 28th September, the European Securities
and Markets Authority (Esma) published its long-awaited draft
Technical Guidelines for the Market Abuse Regulation (MAR),
setting out how MAR will apply in practice to market
participants, market infrastructures, and national
supervisors. The new regulation and guidelines will have
a substantial impact on market participants’
operations, aiming to increase capital markets’
transparency, safety and resilience as well as improving
A number of firms will for the first time
need to prove they have automated surveillance capabilities in
place, including investment firms engaging in OTC derivative
trading and algorithmic trading. Other market operators and
investment firms will most likely have to re-architect their
internal systems in order to comply with the detailed
information capturing requirements and Suspicious Transaction
and Order Reporting (STOR) requirements. Esma has deemed
that, for the large majority of cases, an automated
surveillance system is the only method capable of analysing
every transaction and order, individually and comparatively,
and which has the capability to produce alerts for further
analysis in a structured workflow.
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