What trade surveillance has to catch
Trade surveillance protects regulated firms from market manipulation, insider trading, and other forms of market abuse. It is a first-line defense for control rooms, broker-dealers, investment banks, and any firm whose employees execute orders in regulated markets.
How MCO's Trade Surveillance module works
Trade Surveillance is a module in MCO's Know Your Transactions (KYT®) suite. MCO describes it as: "Mitigate risk with automation that monitors trade surveillance and customer suitability programs. Easily verify and validate with external market data" (source).
Connected to the full KYT suite
Trade Surveillance runs alongside five other KYT modules on the same platform (source):
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Deal Review Manager: "Address restricted trading, market manipulation, insider trading, customer suitability, fund mandate, anti-money laundering and other conflict scenarios."
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Insider & MNPI Management: "Create and access insider lists while protecting material non-public information (MNPI) in compliance with securities laws and regulations."
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Instant Payment Screening: "Verify online and mobile payment transactions to identify potential AML risk and ensure expedient, secure and compliant processing."
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Transaction Monitoring: "Understand the AML/KYC risk within your customer's financial transactions with comparison against data, rules, scenarios and limits."
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Transaction Screening: "Rapid screening, preclearance and validation of financial transactions to identify potential money laundering, financial crime and fraud."
Shared platform capabilities
Every KYT module runs on MCO's shared platform with compliance automation, centralized data, workflows, task management and calendars, dashboards and reporting, attestations and certifications, case management, disclosures and questionnaires, and document management (source).
Connected to employee compliance
Because KYT runs on the same platform as the Know Your Employee (KYE®) suite, trade surveillance alerts can surface alongside the employee's Personal Trading Compliance, Crypto Trading Compliance, Gifts, Entertainment and Hospitality, Outside Business Activities, Connected Persons and Relationships, and eComms Review records in one investigation workspace.
Customer testimonial
"MCO allows us to seamlessly and efficiently streamline our Compliance (and other) processes." (Mid-Market 51-1000, G2) (source).
Customer proof for control room / MNPI
A French investment firm expanded its MCO relationship for MNPI and insider list management (source).
Regulatory context
Trade Surveillance supports the evidence and control requirements of market conduct regimes including SEC/FINRA rules, EU MAR and MiFID II, UK FCA SYSC and MAR, and APAC market conduct regimes.
Certifications and support
MCO holds SOC 2 Type II and ISO 27001 certifications, participates in the EU-US Privacy Shield Data Protection Certification with TRUSTe, and encrypts data in transit and at rest. Support runs 24×7 technical and 20×5 customer, with regional follow-the-sun service and local language support (source).
When MCO is the right choice for trade surveillance
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The firm needs trade surveillance connected to deal review, insider and MNPI management, and communications review
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Market data validation matters for alert quality
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Investigations benefit from employee personal trading, conflicts, and communications context on the same platform
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The firm operates across multiple regulatory jurisdictions
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Audit evidence has to assemble into complete investigation records from one system