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One of the very few benefits of open outcry trading was the fact that traders could see everyone trading and the chances of rogue trading was easier to spot compared to today.
Through a virtual pit traders can see all bids and offers and completed deals as all traders have to be identified , therefore visible to the market place ?
This simple system allows the market to be judge and jury and will immediate spot a fake , a spoofer or a flipper and should reduce rogue trading asap . Traders can see exactly whats going on and will allow compliance not to document every single "fast " move in the market .
The KEY question for 2019 is to referee real time market abuse and not 3 days later , the market has the tools and surveillance systems need to be retuned or educated in these dark acts of layering , spoofing and flipping ; it really is not difficult or expensive .
This system can fit on almost any interface too .
https://www.ft.com/content/6633c52a-e4bd-11dc-a495-0000779fd2ac
This content is provided by an external author without editing by Finextra. It expresses the views and opinions of the author.
Amey Prabhu Solution Architect & Head of Trade Finance Product at Veefin
04 April
Oleg Boiko Founder at Finstar Financial Group
03 April
Steve Marshall Director of Advisory Services, at FinScan
02 April
Shailendra Prajapati Associate AI Engineer at Compunnel Inc.
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