Market Abuse and Trade Surveillance

This course provides a detailed overview of the emerging field of Trade Surveillance. After Day 1 participants will be able to discuss this topic knowledgeably, without fear of jargon, and with good awareness of major historic cases. Day 2 provides more detailed information about the challenges and difficulties of Trade Surveillance in practice; and potential future solutions.

The course starts with an explanation of the jargon and terminology used by practitioners; and then relates industry jargon back to the language used in legal and regulatory texts. Having established what Market Abuse is, we move on to an explanation of how Trade Surveillance is designed to catch it. The day finishes with a review of high-profile Market Abuse and Insider Trading case studies.

Day 2 starts with a more detailed review of how Trade Surveillance works in practice. Considering the wide range of stakeholders in the process we discuss the responsibilities that fall to each group, and how each measures their own success. We then review public examples of compliance failures and what steps can be taken to address these in practice.

The course finishes with an up-to-date look at current trends and developments. These include the possibilities arising from advances in technology and artificial intelligence; evolving regulatory priorities, and the rise of the ‘Surveillance Professional’.

• Surveillance teams
• Compliance teams
• Internal audit
• Legal & regulatory teams
• First line of defence
• Risk managers
• Traders, sales and market participants
• Technology and data scientists

• Understand the types of behaviour considered to be Market Abuse
• Gain familiarity with global legal and regulatory frameworks for Market Abuse
• Review high-profile cases of Market Abuse and Insider Trading
• Understand roles and responsibilities for mitigating the risk of Market Abuse
• Consider appropriate measures of success for Trade Surveillance
• Explore current Trade Surveillance practices
• Understand data dependencies and statistical techniques, including for unstructured data
• Consider the future of surveillance in the context of regulatory developments, artificial intelligence, and the skills and capabilities required for the future

A basic understanding of capital markets and securities trading.

An introductory explanation of Market Abuse & Insider Trading

• What are the behaviours that constitute Market Abuse?
• An explanation of the jargon and terminology
• Categories and groupings of Market Abuse behaviours

Market Abuse Risk Assessments – Part I

• Identifying Market Abuse risks in your organisation

Regulatory and Legal Perspectives

• The historic development of Market Abuse and Insider Trading Legislation – why do we have the rules that we have?
• Global comparisons of Market Abuse regulatory approaches
• The interconnections between Fraud, Anti-Trust and Market Abuse legislation

Trade Surveillance in Practice

• Trades, Orders & Communications – What they are and how to use them
• Case Management Tools & Alert Review
• Surveillance Outcomes, including Regulatory Notifications

Enforcements and prosecutions

• Putting Market Abuse and Insider Trading in historic context of Financial Crime

Case Studies: which behaviours were exhibited and which rules were broken?

The people involved in the Surveillance process

• An introduction to the 3 lines of defence, and the responsibilities of each line
• How does each group measure success. What are their incentives and how do these impact surveillance outcomes?

What are the weaknesses of the Surveillance process?

• Concerns raised by regulators
• Common practices to ensure high quality surveillance outcomes

Market Abuse Risk Assessments – Part II

• Demonstrating the extent to which your Surveillance mitigates the risk of Market Abuse

Trends and Future Developments

• Record-Keeping & Social Media: Is there a trade-off against Personal Data Protection?
• Should Voice Surveillance be deployed as comprehensively as E-Comms Surveillance?
• Advanced Data Capabilities:
  • How far can we confidently expand the range of data that we use?
  • Where will Artificial Intelligence genuinely add value?

Surveillance Professionals: What does it take to be successful in this field?

• Which skills should we recruit and which should we train?