Travis Schwab, CEO of Eventus, discusses the importance of trade surveillance in ensuring market safety and compliance. They explore the evolution of market infrastructure and technology, challenges in developing advanced financial technology, and share their diverse summer reading list featuring sci-fi books.
Trade surveillance software aids in detecting manipulative actions for market safety and transparency.
Balancing privacy protection with effective surveillance tools is crucial for maintaining market integrity.
Deep dives
The Challenge of Data Management and Rule Changes
Dealing with the continuous influx of data and adapting to evolving rules poses a significant challenge for maintaining a platform's flexibility and compliance. Trade surveillance software solutions aim to help firms monitor various activities based on regulatory requirements and best practices, ensuring market safety and transparency.
Detection of Market Manipulation and Insider Trading
Trade surveillance focuses on detecting manipulative actions like market manipulation and insider trading, with a heightened focus stemming from regulatory changes post Dodd-Frank. The shift toward criminalizing market manipulation has increased the importance of surveillance tools to prevent illegal activities and ensure a fair and transparent marketplace for all users and stakeholders.
Balancing Data Privacy and Surveillance
Ensuring a balance between detecting bad actions and protecting privacy and intellectual property is crucial in surveillance operations. Upholding strict data privacy protocols and providing clients with customizable software solutions enable firms to monitor trading activities without compromising sensitive information, respecting different privacy regulations across jurisdictions.
Evolution of Trade Surveillance Technology
The evolution of trade surveillance technology mirrors the electronification of markets, necessitating advanced tools to process vast amounts of data efficiently. Historical trade surveillance methods involved manual processes that transitioned to technology-driven solutions for data normalization and analysis, ensuring surveillance systems keep pace with market developments and regulatory requirements.
We kick off this year’s Summer Playlist with Travis Schwab, CEO at Eventus. SmarterMarkets™ host David Greely sits down with Travis to discuss the role of trade surveillance in making markets not only smarter, but safer – and how this essential piece of market infrastructure is meeting the challenge of new technologies and new market conditions
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