About a-team Marketing Services
The knowledge platform for the financial technology industry
The knowledge platform for the financial technology industry

A-Team Insight Blogs

Trade Surveillance is Challenging, But is There Also a Glint of Opportunity?

Subscribe to our newsletter

If Market Abuse Regulation (MAR) and Markets in Financial Instruments Directive II (MiFID II) extend the breadth and depth of trade surveillance, could they also provide opportunities for firms that get it right? These issues and more were debated during a panel session at last week’s A-Team Group Intelligent Trading Summit in London.

Intelligent Trading Technology editor Michael Shashoua moderated the panel and was joined by Justin Nathan, surveillance technical officer at Credit Suisse; Adrian Hood, regulatory and financial crime expert at The Investment Association; Kevin Taylor, managing director, group head of CIB compliance strategic advisory at UniCredit Group; Dermot Harriss, senior vice president, regulatory solutions at OneMarketData; and Adrian Guest, sales manager EMEA at b-Next.

The panel set the scene for discussion with a snapshot of surveillance extension, noting that MAR and MiFID II add surveillance for instruments traded off as well as on regulated markets, and cover a broader range of assets and trading venues including Multilateral Trading Facilities (MTFs) and Organised Trading Facilities (OTFs). Surveillance is no longer focussed on the sell-side, with buy-side firms including brokers and asset managers being brought into the scope of the regulations. The concepts of attempted and intended market manipulation are also introduced, along with increased disclosure requirements.

Looking at the extent of MAR and MiFID II surveillance, Taylor commented: “The regulations stop short of a requirement for automation, but firms will need automation to meet their scope and obligations.” In terms of difficult obligations to meet, Nathan highlighted intent to manipulate markets as it is so tough to proof.

With surveillance pushing into the buy-side, Guest described the need for firms to set up projects with an emphasis on monitoring insider trading, while firms already running surveillance programmes need to identify and fill gaps. The quality of data is critical.

Considering how surveillance can be demonstrated, Nathan said: “Numbers are superficial. As a member of a surveillance team, you need to know that your system is effective and efficient.”

Taking this to the next level, Harriss outlined the opportunities of MAR and MiFID II surveillance, saying: “Firms are not thinking well about MAR and MiFID II if they are not thinking of the regulations as a revenue opportunity. The transparency required means customers will have better metrics to make choices. When that happens, for example in best execution, there are revenue opportunities.”

At this point, a request for a show of hands on whether firms consider surveillance to be a trading or compliance issue revealed that surveillance is driven in most firms by compliance rather than trading, suggesting it is not yet on the strategic agenda. That said, panel members took different views on whether responsibility for surveillance should lie with trading, but all agreed that wherever responsibility lies, trading should understand surveillance.

While the need for surveillance is increasing, finding technology solutions is not always easy. Guest concluded: “Big banks are challenged by monitoring all their systems including what people say. Solutions are evolving towards this, but are not yet very advanced.”

Subscribe to our newsletter

Related content

WEBINAR

Upcoming Webinar: Managing Non-Financial Misconduct Under SMCR

9 October 2025 11:00am ET | 3:00pm London | 4:00pm CET Duration: 50 Minutes Non-financial misconduct—encompassing behaviours such as bullying, sexual harassment, and discrimination is a key focus of the Senior Managers and Certification Regime (SMCR). The Financial Conduct Authority (FCA) has underscored that such misconduct is not only unethical but also poses significant risks...

BLOG

Unlocking the Value of Data as a Differentiator

The rhetoric around data as a strategic asset is now well established across capital markets. But as AI adoption accelerates and pressure mounts to deliver tangible outcomes, the real challenge is turning that rhetoric into operational reality. Access to data is no longer the constraint. What matters now is how effectively firms can organise, govern,...

EVENT

TradingTech Briefing New York

Our TradingTech Briefing in New York is aimed at senior-level decision makers in trading technology, electronic execution, trading architecture and offers a day packed with insight from practitioners and from innovative suppliers happy to share their experiences in dealing with the enterprise challenges facing our marketplace.

GUIDE

AI in Capital Markets: Practical Insight for a Transforming Industry – Free Handbook

AI is no longer on the horizon – it’s embedded in the infrastructure of modern capital markets. But separating real impact from inflated promises requires a grounded, practical understanding. The AI in Capital Markets Handbook 2025 provides exactly that. Designed for data-driven professionals across the trade life-cycle, compliance, infrastructure, and strategy, this handbook goes beyond...