LSEG Launches Trade Surveillance Offering

LSEG has entered the increasingly crowded market for trade surveillance tools with the launch of two solutions under its Trade Surveillance module, one for MiFID, the other for FX.

The firm says the solution is completely plug and play for clients of its Regulatory Reporting Solutions service and is designed to assist market participants identify and investigate potential market abuse activities.

Trade Surveillance for FX provides a solution for spot FX participants on the LSEG FX Dealing, Advanced Dealing and Matching platforms, as well as those trading on third-party venues captured by LSEG’s Trade Notification network. Available through a Web-based GUI with zero integration required, LSEG says the FX solution also includes the ability for clients to view their private trade data against the public Spot Matching orderbook.

“In a fragmented FX market, context is vital to help assess and manage regulatory risk,” observes Bart Joris, head of FX sell-side trading at LSEG. “Trade Surveillance for FX brings together trusted data as well as activity across LSEG FX platforms and third-party venues, enabling participants to better analyse trading behaviour and make insight-based decisions efficiently.”

LSEG says that as market behaviours and regulatory requirements evolve and place demand on financial institutions to identify market abuse and financial crime in increasingly sophisticated ways, traditional surveillance tools can be inefficient and costly. Addressing these challenges head-on, it says the new offerings are built on a breadth of high-quality, trusted data, and leverage LSEG’s proprietary surveillance technology which processes billions of trade and order messages across its venues every day.

The new tool provides clients with alerts on their private trade data, alongside contextual public market data, reference data and news to facilitate cross-venue alerts that are designed to help reduce false positives, as well as behavioural anomaly detection capabilities that provide deeper insights into trading behaviour.

The MiFID solution is a multi-market, multi-asset offering that utilises the same datasets used by UK and EU regulators for market abuse detection. The solution delivers cross-venue, cross-product alerting, enabled by LSEG’s consolidated European orderbook, built with data from over 40 UK and EU trading venues and APAs.

“Ensuring compliance with the Market Abuse Regulation remains fundamental to firms with regulatory obligations,” says Bruce Kellaway, CEO, Regulatory Reporting Solutions, LSEG. “With its methodology and data-sets aligned with UK and EU regulators, Trade Surveillance for MiFID offers a robust multi-market, cross-product and cost-effective solution that customers can adopt with minimal effort, to support firms in evidencing regulatory compliance.”