b-next holding AG | Herford, Germany, July 6, 2010 |
The Significant Role of Technology in Tackling Market Abuse
Recent findings by financial sector consultants MPI reveal that firms believe market abuse is a systemic risk that is largely immune to tougher regulation and could be tackled by significant developments in technology. Of over 500 senior directors and staff in financial institutions surveyed, 80% specified the importance of new prevention techniques and over two thirds envisaged an integrated suite to cover all market abuse and compliance needs.
"Given the strong view from the market that better technology is required to tackle market abuse" says John Cant Managing Director, MPI Europe "we needed to identify a strong technology solution to address this as a part of a combined service. Our evaluation recognised b-next's MACOC:Suite as this solution."
The survey results show that members of the financial institutions broadly agree on the causes of market abuse. The vast majority of those surveyed consider misuse of information and insider trading to be the most significant problem, with 75% surveyed rating the manipulation of transactions as the second most likely cause.
There is a strong emphasis upon changes in technology being a necessary element for any reduction to be seen. Within that context over 80% of those surveyed believed that the development of new techniques is required. The survey showed that over two thirds envisaged an integrated suite to cover all market abuse and compliance needs would assist in their own efforts to negate the problem.
"The results reveal that compliance officers have a clear understanding of the problem that needs to be tackled and what steps should be taken to prevent it. b-next launched its market abuse solution in 2008 to cover the various different scenarios of Market Abuse. Like implementing a silent alarm system running in the background, financial institutions using our solution increase their chances of stopping illegal activity, reporting the perpetrators to the authorities and protecting their reputation in the market. The FSA's aggressive stance should further help stamp out this activity." Wolfgang Fabisch, CEO, b-next group.
About MPI Europe
MPI Europe was established in 2004 and specialises in Financial Services Consulting. The company focuses on business process and technology projects that result from regulatory driven and technology enabled change. They have a significant track record working in banking, capital markets, asset and alternative funds management. Over recent years, MPIE has successfully completed business driven programmes for MiFID and other regulatory programmes, Fidessa implementations, merger/integration, equity commission sharing/unbundling, operational risk, and client reporting and has worked with a number of leading banks and asset management companies, as well as with specialist information technology firms. Our content-led, innovative, collaborative and implementation focused approach differentiates us from other consultancies.
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