The Market Abuse Regulation(MAR) will be implemented on 3rd July 2016. From that date, the scope of the original MAD will be widened to include most asset classes traded on venues such as exchanges and MTFs (Multilateral Trading Facilities). Off venue trades and spot commodities that could impact their prices are also included.
MAR includes a provision that PPAETS, (Professional Persons Arranging or Executing Transactions) must have effective monitoring arrangements in place. The PPAET is widely defined and so many market participants will need to consider improving their surveillance processes and technology.
This post by Gordon Allot of Broadpeak Partners considers the issue of data acquisition for surveillance. While REMIT makes it easier to access orders placed on an Organised Market Place, it is still difficult to pull in all of the data required to run a basic surveillance technology.
Most energy and commodities market participants are likely to take an incremental approach to surveillance, rather than investing large sums in large and expensive projects. Even so, data sourcing, and the general ability for a market participants to have all of the data generated by their traders’ activity, is likely to be important.