Track the entire order flow of the company
With the introduction of MAD 2/MAR, European trading houses are obliged to check their order flow according to a wide range of criteria - regardless of whether orders were placed via their own memberships or via a broker.
- The e-Trading Compliance Monitor aggregates order actions from all connected trading systems in a central database for analysis. The system thus enables seamless monitoring of all trading activities in real time according to the rules from MAD 2/MAR.
- The ECM can be used to enable order flow monitoring in the sense of BaFin Circular 06/2013: »Requirements for Systems and Controls for Algorithm Trading by Institutions« and in the sense of »Final Report ESMA's technical advice on possible delegated acts concerning the Market Abuse Regulation«. Orders enter the system in real time and are also checked for anomalies in real time.
The e-Trading Compliance Monitor (ECM) can run in different modes
Analyses order flow in real time to comply with BaFin Circular 06/2017.
Analyses the order flow after all data is stored in the ECM database.
Various Monitoring Reports
Ping orders, painting the tape, phishing
Are relatively small orders set to detect any hidden orders?
Are a conspicuous number of orders being placed in order to possibly feign trading activity?
Momentum ignition, pump and dump, trash and cash, colluding, advancing the bid
Are orders placed to reinforce a price trend?
Layering and spoofing, placing orders with no intention of executing them
Are orders set on one side of the book to execute orders on the other side?
Wash trade, improperly matched orders
Are cross trades conducted between one or more parties?
Inter-trading venue manipulation
Is the price of an instrument manipulated on by manipulation of one trading venue on another?
Marking the close
Are price manipulations timed
with specific market events?