Regtech - calibration is key

In recent years we have seen examples of firms being fined despite having a tech-driven process in place to address their obligations under the Market Abuse Regulation. Suitable surveillance technology is only part of the solution, writes Monica Rodriguez.

Monica Rodriguez is a consultant at Bovill (www.bovill.com) who formerly spent nearly eight years at the FCA as a market abuse policy expert. Bovill has developed a market abuse surveillance managed service for its clients, in collaboration with software company KRM22.

The Financial Conduct Authority's most recent Market Watch looked at firms' arrangements for market abuse surveillance, noting that despite standards improving across the industry too many firms are unaware of the developments in regtech and they are not making the best use of the technology available. In addition, the regulator highlights that effective monitoring not only hinges on the system selected but also how firms tailor the system accurately to align it to the risk assessment.