Objective

Enhancing a UK bank’s trade surveillance system to improve performance and ensure compliance with new Market Abuse Regulations (MAR)

CRISIL’s Solution

• The CRISIL team reviewed the client's existing trade surveillance model, conducted the gap analysis (on regulatory changes) and implemented the changes to make the solution more efficient and effective.
  
• Analyzed the parameters in current scenarios and further refined them to generate more meaningful alerts in market and trade risk activities;
  
• Assisted in development of new scenarios and parameters to generate alerts on Market and Trade risks, including:
  
  • 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 automated system in which alert reports can be directly loaded into integrated dashboard to monitor and investigate the trade alerts easily.
  

Client Impact

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

Questions

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