News & Views

The Canadian Securities Administrators Signals Increased Attention on Cross Market Surveillance

The Canadian Securities Administrators Signals Increased Attention on Cross Market Surveillance

At the end of January, the Canadian Securities Administrators (CSA) announced that the Investment Industry Regulatory Organization of Canada (IIROC) and the Montréal Exchange (MX) have entered into a Memorandum of Understanding (MoU) regarding cross-market surveillance.

The primary objective is to “assist in the development, administration, coordination and fulfillment of the cross-market surveillance mandate.” The MoU broadens the cooperation between IIROC and MX and sets out the roles and responsibilities of each SRO including cross-asset surveillance and the sharing of data related to market surveillance, investigations and enforcement. 

The announcement follows increased attention from regulators globally on the need for cross-market surveillance. Other instances include the FCA in Market Watch 68 calling out the need to monitor all orders and transactions whether single or cross-product, the SEC’s proposed rule 9j – a narrowing the distinction between a derivative and its underlying and their pursuit of “Shadow Trading,” and the CFTC pursuing cross-product spoofing. The message is clear: cross-market monitoring needs to be part of your surveillance program. 

ViP: Eventus’ Validus platform employs best-in-class data practices to bring together our clients’ disparate data sources across asset classes and traded products. Our system scales to handle billions of messages a day and provides a single interface to view, filter and analyze normalized data regardless of asset class, traded product or data source. We offer over 200 configurable procedures including coverage for cross-venue manipulation as well as Insider Dealing monitoring across related products. In addition, in response to regulatory attention and client demand, we are scheduling updates that will significantly improve our ability to automatically monitor cross venue manipulation between listed and OTC markets and the ability to provide cross-product surveillance across our suite of market abuse procedures. This includes the ability to identify spoofing across correlated instruments, manipulation of a derivative to influence the underlying (or vise versa) and insider dealing in correlated instruments (i.e. “Shadow Trading”). 

Is cross asset, cross venue and cross product surveillance on your radar? We would love to speak with you to understand your requirements and demonstrate the solutions we offer.


About Eventus Systems

Eventus Systems is a leading global provider of multi-asset class trade surveillance and market risk solutions. Its powerful, award-winning Validus platform is easy to deploy, customize and operate across equities, options, futures, foreign exchange (FX), fixed income and digital asset markets. Validus is proven in the most complex, high-volume and real-time environments of tier-1 banks, broker-dealers, futures commission merchants (FCMs), proprietary trading groups, market centers, buy-side institutions, energy and commodity trading firms, and regulators. The company’s rapidly growing client base relies on Validus and Eventus’ responsive support and product development teams to overcome its most pressing regulatory challenges. For more, visit www.eventus.com.