October 3, 2017

Despite, or maybe because of, the political and financial upheavals of the past few years, change seems to be a daunting prospect for the financial services industry. This might be one of the many reasons that legacy systems are still a firm fixture in several organisations. Familiarity though can breed contempt and who would opt to buy an iPhone 5 over the brand new shiny iPhone 8 now adorning the shelves?

For those that do remain old school, cost may be a factor but so too is a desire to be retro. Just look at the popularity of the Nokia 3310 reboot. However, the buy and sellside cannot afford to make an old fashioned statement in the seemingly never endings stream of complex regulations. Only the next generation of technology will make the correct statement.

This is particularly true with the stringent regulatory technical standard (RTS) 6 under MiFID II which requires investment firms engaged in algorithmic trading, providing direct electronic access and acting as general clearing members to establish fortress security, monitoring and surveillance systems. The new rule among other things obliges firms to not only minimise the risks of attacks but also to monitor their access to IT systems to ensure traceability at all times.

Equally as important, real time monitoring will be required for all the controls regarding algo-trading, pre and post-trading. Breathing room is sparse – participants need to generate alerts within five seconds of the relevant event.

This means firms will need real-time, cross-venue and multi-asset platforms that are equipped with state-of-the-art scalable processes able to handle significant fluctuations in throughput. Systems will not only need to respond to the lightening quick pace of market change but also spew out surveillance scenarios on an intraday basis, to negate the number of false-positive indicators.

Vendors may be knocking on the door, but like the new iPhone 8, Aquis Market Surveillance (AMS) next-generation platform stands apart from the rest of the pack. For one it is designed and run by professionals steeped in regulatory and market experience and who are actually involved in running Aquis Exchange. AMS users across the board will have their fingers on the monitoring pulse through cutting edge but affordable surveillance capabilities endowed with a highly configurable user interface, an innovative report suite and real-time alerting.

By Lynn Strongin Dodds