How Integrated Communications Surveillance Improves Trading Floor Fraud Detection

Fonetic Team
Thursday, 05 October 2017 / Published in Compliance, Communications Surveillance

In this article we discuss the common, pressing concerns for all financial trading floor surveillance teams. We then look at integrated communications surveillance and how it solves these problems for financial organisations, leading to lower fraud instances and greater process efficiency.

Financial organisations face increasing trading floor surveillance challenges. One, the responsibility of complying with regulatory demands and petitions obligates financial organisations to invest considerable resources in surveillance. Two, they must meet the needs of analysing and holding massive amounts of data, to minimize fraudulent activity and to optimise the process of escalating potential fraud cases. Three, they must suffer the consequences of failing to successfully stop instances of fraud, usually involving fines and/or possible damage to their own assets.

Additionally, organisations must comply with two flagship regulations: Market Abuse Regulation (MAR) and Markets in Financial Instruments Directive II (MiFID II). MAR came into effect in 2016 and the MiFID II deadline is January 2018. Both regulatory protocols require extensive resources on the part of financial organisations. Regulators can inflict punitive measures on banks and financial institutions that fail to comply