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Insider traders confiscation orders and other anti abuse news

The FCA has reported here that confiscation orders have been made against two individuals who have already been convicted of insider trading in a complex scheme, discovered as part of “Operation Tabernula” in 2016 (see here). This is part of the FCA focus on anti market abuse activity which has been seen recently.

In the US, the focus on anti abuse measures also continues. This article on the Lexology web site by Dechert LLP reports on the focus on spoofing cases, adding that the recent acquittal of a trader in a criminal case(see here)  is unlikely to deter the CFTC. Also in the US, this article on RTO Insider reports that an energy trader has settled with FERC for $1.9M for the alleged manipulation of the California energy market. This alert on Lexology by Bracewell LLP lists several fines levied by US based exchanges for market abuse violations, including in commodities, over the past weeks.

In the meantime market participants, spanning investment firms and also others in energy and commodities, continue to increase their anti abuse efforts. This article on the International Business Times discusses how a move to artificial intelligence based surveillance using existing data may overcome some of the difficulties in implement a surveillance system based on structured data. This blog post by Gordon Allot of Broadpeak Partners considers why order and trade data is often insufficient for surveillance, in this case looking at why tick level market data is important. This article on Bobs Guide by Mark Woolfenden looks at how regulators use data collected from different sources to construct regulatory cases.

It is likely that the focus on anti abuse measures, be it via process, policy or technology will continue over the coming months, as companies make efforts to ensure compliance in practice and spirit.


About avivhandler

Aviv is the Managing Director of ETR Advisory, a niche consultancy focused on the regulation of the commodity, energy and financial markets. He has more than 23 years of experience in the financial, energy and commodity markets, covering regulatory compliance, credit, risk and financial technology. Prior to founding ETR, he was Partner at SunGard Global Services, where he built a Centre of Excellence in European Energy and Commodity Regulation. Before that, he founded Coherence, a consulting firm specializing in credit risk in commodity and energy trading as well as software product management. The credit practice ultimately became part of Sirius Solutions, where he was the Managing Director of Europe. He has also held management roles at KWI and Iris Financial, among other organizations. Mr. Handler holds a degree in computer science from Imperial College, University of London.


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