Keeping Up with Compliance & Surveillance in the Capital Markets

Manipulative trading tactics in the capital markets have been around as long as the markets themselves. And when trading programs evolved to include digital and algorithmic elements, underhanded trading schemes evolved alongside them. Methods like spoofing and dynamic layering enable bad actors to sway prices and may have contributed to some of the largest market crashes to date, including the May 2010 Flash Crash.

In a post-Dodd Frank industry, FINRA, the SEC and other regulatory bodies are cracking down on malicious traders, forcing broker dealers to provide the proper surveillance controls or pay the price. Yet many firms fall short, unable to keep up with trade activity via spreadsheet analysis, invest in a major compliance solution or overhaul out-of-date, legacy software.

In Firm58’s whitepaper, “Shape up or Pay Up: How Broker Dealers Can Keep Pace with Compliance,” you’ll find key recommendations for brokerage and trading firms to adapt their internal compliance standards and prove to regulators that they’re taking necessary surveillance of industry risks, even as they continue to fluctuate.

Fill out the form on the right to download our compliance landscape whitepaper.