What does good look like in the world of surveillance?
09 January 2017
By Ruk Permal
I was recently appointed as primary adviser to the FICC Markets Standards Board (FMSB) on market abuse and surveillance. Over the past few months, the team and I worked closely with FMSB leadership and its member firms to produce Statements of Good Practices on Surveillance.
This document has been developed by the industry for the industry and provides you with an opportunity to assess how your firm compares to others as well as looking ahead at emerging risks and practices.
- Sets out principles for surveillance that can be applied across all FICC markets;
- Provides your industry with statements of good practice for surveillance in foreign exchange markets that can be used to benchmark your organisation’s own surveillance capabilities; and,
- Provides a view of emerging risks and practices that you will need to be mindful of.
The Statements of Good Practices details a number of surveillance practices currently undertaken by market participants to mitigate the risks of insider dealing, market manipulation and other transaction based conduct risks. The paper provides a breakdown of risks relevant to Sell-Side firms, Buy-Side firms and venues, and an indication of what type of surveillance is considered good practice based on input from member firms of the FMSB.
At PwC, we have a team of surveillance specialists who can help you assess how you compare to the industry and work with you to design and enhance your surveillance capabilities. Having worked with the FMSB and its member firms to develop this document, we are ideally placed to:
- support you to put the surveillance principles into practice;
- assist you to understand gaps between current industry practices and your surveillance capabilities; and
- help you design your roadmap for the future given the pace at which surveillance capabilities are evolving.
To read the full Statement of Good Practices visit the FMSB website.
Please feel free to contact me if you would like to discuss the FMSB paper or any of the issues raised above