Objective

Assist the client in strengthening its Market Abuse and Trade Surveillance control environment by integrating New Market Abuse Regulations (MAR) and Conduct Risk Management Framework.

CRISIL’s Solution

• The CRISIL team kicked off the engagement with a current-state assessment of the trade surveillance model, policies and procedures, including benchmarking and gap analysis (on regulatory changes).
  
• Working from the results of that assessment, we designed and implemented a future state conduct risk management framework for market abuse, including new markets technology, behaviors and controls.
  
• Analysed the parameters in current scenarios and further refined to reduce false positives for the markets and trade risk activities.
  
• Designed and developed new policies and procedures, including controls for managing:
  
  • Market manipulation Risk: Algo Trading, Wash Trades
    
  • Trade Data Risk: Stop-Loss Triggers, Fix Manipulation
    
  • Suspicious Transactions: Insider Dealing, Partial Fills, Front Running, Best Execution
    
• Designed, developed and implemented risk-based automated system in which alert reports can be directly loaded into integrated dashboard to easily monitor and investigate the trade alerts.

Client Impact

• The client met all market abuse guidelines defined by FCA and improved its governance framework around trade surveillance in a short span of time;
  
• Integrated Dashboard for alerts reports helped drive review efficiency and facilitate micro-analyses on trade risk alerts.
  

Key Benefits

• Adherence to MAR /MAD regulations;
  
• Profiling of customers to categorise associated risk;
  
• Visual evaluation of results;
  
• Elimination of significant manual monitoring and human errors;
  
• Maximum coverage scenarios integrated for Market Abuse.
  

Questions

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