1 / 3

The Compliance Investigations | Both Communications and Market Data Analysis

The Compliance Investigations get more effective when it is carried out properly and Compliance officers also consider the trade and market data contemporaneous with a suspicious event. Check out this blog for more information or view this pdf file. Source: https://bit.ly/3gNqIZX

shielfc
Download Presentation

The Compliance Investigations | Both Communications and Market Data Analysis

An Image/Link below is provided (as is) to download presentation Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author. Content is provided to you AS IS for your information and personal use only. Download presentation by click this link. While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server. During download, if you can't get a presentation, the file might be deleted by the publisher.

E N D

Presentation Transcript

  1. SHIELD FC BOTH COMMUNICATIONS AND MARKET DATA ANALYSIS CRUCIAL TO EFFECTIVE COMPLIANCE INVESTIGATIONS Rigorous Review Requires a Full Picture Traders are sophisticated, and they can find creative ways of working the system. Over the decades, unscrupulous financial professionals have colluded to buy and sell securities and commodities according to strategies carefully crafted to manipulate market prices. New technologies have made market manipulation more accessible – and less detectable – than ever before. As a result, compliance officers are facing increasingly data-driven investigation requirements. For more information, please visit our site at https://www.shieldfc.com/

  2. Effective compliance investigations require a complete view of all relevant facts, and there is any number of ways unsavory traders can manipulate financial markets using modern technology. As a result, in today’s markets, effective communications compliance enforcement systems collect and analyze not only electronic communications but also relevant transaction and market data on a historical or intraday basis. Improvements in Compliance Data Boost Enforcement Effectiveness Most regulated financial firms run sophisticated Communications compliance monitoring systems that flag events that could amount to violations of applicable regulations. In most circumstances, when a compliance officer receives a red flag from the monitoring software, his or her first response is to review all of the communications the traders had regarding the suspicious transaction. As simple as this process may seem to the uninformed observer, the fact of the matter is that large compliance departments receive thousands of potential noncompliance alerts every day.

  3. Trade Data Proves Crucial in Effective Compliance Investigations Market manipulation can be hard to detect, particularly because in some circumstances it is only evidenced by careful scrutiny of trade-related data. For example, when most traders are considering a purchase or sale of stock, they will look at the prevailing prices, which are the “bid and ask” or “bid and offers” prices. The difference between these two figures is called the bid/ask spread. In a very efficient market, this spread will be minimal – the difference between the buy and sell price will be very close. Compliance technology has grown incredibly sophisticated. Once machine learning software collects sufficient data, artificial intelligence solutions can detect market manipulations to an incredible degree of sensitivity. This saves compliance officers from the mundane work of analyzing thousands of possible data points and select what is relevant for a compliance investigations and what is not. Advanced AI solutions with neuro-linguistic programming can even predict a trader’s intention to commit market manipulation, adding yet another of security on an increasingly sophisticated technology-driven compliance environment. Source: https://www.shieldfc.com/

More Related