SunGard has extended the capabilities of its Protegent solution suite to help regulators, trading venues and firms monitor, detect and resolve market manipulation and insider trading activities.
New features include a rules library that supports compliance with the European Securities and Markets Authority's (ESMA) 2012/122 "Systems and controls in an automated trading environment for trading platforms, investment firms and competent authorities" guidelines and similar regulatory changes.
SunGard's Protegent supports the ESMA mandate for real-time, cross-market surveillance by analyzing orders, trades, positions, historical data and market data from multiple trading venues and regions in real time. Users can analyze trading patterns across single or multiple asset classes and trading venues. Protegent also helps firms detect and act on specific behaviors outlined by ESMA, including suspicious manipulative activities such as "quote stuffing," "momentum ignition," "layering" and "spoofing."
Installed on the customer's site or hosted by SunGard, Protegent can be deployed regionally or globally.
Rebecca Healey, senior analyst at TABB Group, said, "The need for improved surveillance is largely being driven by the trend towards automated trading and the migration of more asset classes onto exchanges. Technology like SunGard's Protegent can help firms comply with the latest rules, scale for increased trading volumes and monitor activity across regulatory jurisdictions, regions and asset classes."
Steve Sabin, chief operating officer of SunGard's Protegent business unit, said, "It's crucial that trading participants establish a comprehensive trade monitoring process in order to adhere to regulatory requirements such as ESMA's latest guidelines, and minimize the regulatory risk involved in trading activities while protecting their reputation. SunGard's Protegent helps customers identify high risk behaviors that require compliance reviews and respond quickly in advance of and during regulatory and legal inquiries."