Amid an explosion in the growth of security market operators that compete with each other both within and across instruments and geographic locations, the question arises as to the implications of a failure to run surveillance across markets. The CMCRC working with industry partner SMARTS is offering parties interested in understanding the problems posed by a lack of cross-market surveillance, “a view into the abyss”.

Creating an effective consolidated audit trail in the process the project estimates the incidence of prohibited trading behaviours (e.g. insider trading, market manipulation, broker-client conflict) in a cross-market environment. Among a range of outcomes is the first numerical estimate of the problem of prohibited trading behaviours for each marketplace.

The key industry research partner is the SMARTS Group.

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