Trade Surveillance
Definition
The systems, processes, and controls used by firms and regulators to monitor trading activity for potential market abuse, including insider dealing, market manipulation, and suspicious order patterns. Trade surveillance systems analyse trading data in real-time or near-real-time to generate alerts for investigation.
Regulatory Context
MAR requires firms dealing in financial instruments to establish effective arrangements to detect and report suspicious orders and transactions (STORs). Investment firms must monitor all orders and transactions, including those on behalf of clients and for the firm's own account.