Surveillance vendor b-next has announced the release of a tool for its Capital Market Compliance (CMC) offering, aimed at detected suspicious trading activity around the foreign exchange (FX) fix.
Regulators and law-enforcement agencies in multiple nations have launched criminal investigations into alleged fraud and market abuse regarding the fix, with some sources saying that the scandal could be larger than that regarding the London Interbank Offered Rate (Libor), which rocked the FX world several years ago.
CMC: Benchmark Fixing Analysis offers a number of automated detection scenarios used to identify potentially abusive behavior around the fix, accomplished with data from Thomson Reuters. It operates on a global basis, given the decentralized nature of the FX market, and can be enabled for any currency pair for FX swap and non-deliverable forward products.
"The CMC:Benchmark Fixing Analysis responds to one of the biggest FX investigations into the financial industry since Libor, with 15 authorities across four continents being involved," says Martin Porter, business development director at b-next. "As some benchmark fixings are based on verbal or system submissions, there's a need for participants to implement monitoring solutions which handle over-the-counter traded instruments and to adapt surveillance rules to regulatory recommendations. The combination of b-next software and Thomson Reuters data will enable firms to implement a more systematic approach to benchmark analysis."
While at Sibos Toronto, James shares some interviews covering topics on blockchain, fintechs and cybersecurity.Subscribe to Weekly Wrap emails