New solution for detecting market abuse and insider trading goes live

Despite ongoing social distancing rules and home working, regulators including the SEC and UK FCA are still strictly enforcing financial firms’ obligations under Market Abuse related regulations, which means powerful and reliable automated surveillance is even more important than ever” says SHIELD CEO Shiran Weitzman

Specialist RegTech provider Shield today announced it has launched an enhanced solution that combines its Insider Trading and Information Handling models -INSIDERS, which answers market demands for greater surveillance to accompany increased remote working in the new normal.

The Shield INSIDERS solution is unique, having not only been built around the use of lexicons, but also combined with an artificial intelligence system, to provide a highly accurate integrated approach.

The enhanced version supports firms that are under unprecedented pressure to monitor all relevant communication channels, whilst demonstrating to the Regulator that any potential avenues for Insider Trading are closed, despite the significant shift in working practices for many employees.

Shield’s INSIDERS solution considers all the intricate and complex details of Insider Lists, making accurate and reliable deductions through an automated approach which understands jargon, slang, and warning signs of potential market abuse. Because of its unique integrated approach and accuracy, it also greatly reduces the chances of time and resource-consuming false positive alerts.

Despite the considerable shift to remote working, regulators are still strictly enforcing the rules. The US Securities and Exchange Commission (SEC) for example, has publicly commented that its virtual enforcement has seen an uptick of investigations and inquiries in insider trading and market manipulation matters, and that its enforcement of regulations continues at full speed, despite many of its own team also working remotely.

Shiran Weitzman, CEO and Co-Founder of Shield comments, “Despite ongoing social distancing rules and home working, regulators including the SEC and UK FCA are still strictly enforcing financial firms’ obligations under Market Abuse related regulations, which means powerful and reliable automated surveillance is even more important than ever. The INSIDERS solution has been developed to ensure firms continue to stamp out market abuse, even when their employees are outside their direct view, whilst working away from company premises. The Shield platform orchestrates the complete communications lifecycle. From pre-integrated connectors, archiving, records management through data normalizations and enrichment, and advanced analytics, our out-of-the-box detection models automatically alert the Compliance team of any potential issues.”

Shiran adds, “The expanding range of eComms used in trading was already a significant challenge for firms when they were largely utilized on-site, but remote working has added a level of complexity that no human investigation team could be expected to accurately monitor. Our enhanced solution gives Compliance and Control Room teams the insights they need to ensure firms avoid potentially hefty fines and significant reputational damage from market abuse.”

He concludes, “The new normal is a challenging time for the whole financial industry, but Shield’s solutions ensure firms have a full view of all interactions, to ensure remote working allows a business to thrive and grow, rather than falling foul of the regulations.”

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