SteelEye launches new Order Book Replay as regulators crack down on market abuse

Rick Steves

“As regulators crack down on market abuse, SteelEye’s market replay provides a comprehensive yet accessible visual representation of a firms’ order and trade activity against the full order book so they can more effectively monitor for irregular behaviors.”

SteelEye has launched its new Order Book Replay service designed to facilitate more precise and rigorous market abuse surveillance so that organizations can playback a trading session and more thoroughly analyze market movements.

The market replay solution, which is fully incorporated and has gone live for a range of clients, allows compliance teams to play, pause, rewind, fast forward, slow down and speed up order book activity to gain a full understanding of what has taken place.

The solution visually showcases the overall balance of the book against market price levels and spreads. It also highlights where trading activity might be indicative of market abuse behaviors like spoofing and layering.

Most firms have limited retrospective view of their trading operations

Matt Storey, Chief Product Officer at SteelEye, commented: “Today, most firms have a limited retrospective view of their trading operations which restricts their ability to identify opportunities, risks, and compliance threats. As regulators crack down on market abuse, SteelEye’s market replay provides a comprehensive yet accessible visual representation of a firms’ order and trade activity against the full order book so they can more effectively monitor for irregular behaviors.”

Matt Smith, Chief Executive Officer at SteelEye, said: “There have been many recent, high-profile examples of firms being reprimanded and fined by regulators for market abuse. These events act as stark reminders of the need to identify, investigate, mitigate, and report on potential instances of market manipulation. With SteelEye’s comprehensive Order Book Replay firms can more effectively oversee their trading operations to better detect market manipulation, not to mention get data insight that can power enhanced decision making and trading performance.”

SteelEye has recently launched an automated Three-Way Reconciliation solution to tackle MiFIR transaction reporting issues. The compliance technology and data analytics firm has designed the solution to help firms fulfill their reconciliation requirements, validate their MiFIR reporting data and easily address errors – ensuring that reporting has been done completely and accurately.

The industry has struggled with data integrity issues since MiFID II came into effect, even though complete and accurate reporting data is critical for regulators to maintain fair and orderly markets.

Many firms have faced difficulties with the reconciliation requirement (under Article 13 (3) and (4) of RTS 22), which aims to enhance reporting quality by making firms validate that the data they have reported matches what was received by the National Competent Authority (NCA) (or Approved Reporting Mechanism/Venue where the NCA doesn’t provide samples).

Some firms end up with error prone and manual validation processes and others have disregarded the requirement entirely.

SteelEye aims to improve reporting completeness and accuracy as regulators in the UK and EU are intensifying their enforcement action.

Read this next

Fintech, Uncategorized

BitMEX integrates HALO from Solidus Labs for cross-market surveillance

““The recent approval of the Spot Bitcoin ETF has piqued the market’s interest. As a result of price volatility, the trading volumes for crypto derivatives have gone up substantially. HALO, with its advanced technology and crypto-native detection architecture, will enable BitMEX to smoothly and safely scale trade surveillance across its increased trading volumes and provide the necessary safeguards for new product launches.”

Industry News

Horizon Software rebrands to Horizon Trading Solutions

“Horizon Trading Solutions has seen accelerated global growth over the past year to meet the rising demand for our trading solutions and built-for-purpose technology offering. The choice to rebrand represents a key part of this development, while maintaining our heritage and history in the industry.”

Market News

USDJPY has surged to levels last witnessed in 2022. Should we consider opening a short position?

The recent resurgence of the US dollar has propelled USD/JPY to new heights, touching levels not seen since 2022. This surge comes against the backdrop of stable short-term yields and ongoing economic data that fails to signal a significant slowdown, prompting questions about the extent of current monetary easing measures.

Digital Assets

DED Trends on Twitter After Memecoin Snapshot Announcement

Polkadot-backed community coin #DED, made it to the trending charts on X, demonstrating community’s engagement and interest behind the memecoin. 

Digital Assets

BlockDAG Presale Nears $10 Million Amid Toncoin’s Momentum, Green Bitcoin’s Presale, and the Rise of Other Top Cryptos

This article will examine three top trending topics: Toncoin’s potential, Green Bitcoin’s innovative presale, and BlockDAG’s sustainable mining approach. These cryptocurrencies take centre stage for their uniqueness and innovation.

Digital Assets

Coinbase scores minor victory vs SEC, but lawsuit to proceed

A federal judge in Manhattan, U.S. District Judge Katherine Polk Failla, ruled on Wednesday that the U.S. Securities and Exchange Commission’s (SEC) lawsuit against Coinbase can largely proceed.

Web3

COTI Teams Up with Civic for Enhanced Digital Identity Control

СOTI and Civic are teaming up to enhance digital identity security in Web3, aiming to provide users with more control over their digital selves through innovative technology.

Digital Assets

BlockDAG Takes on Chainlink (LINK) Crypto, and RON With DeFi Card and 5000x Profit Potential

Explore BlockDAG’s innovative DeFi card, which transforms cryptocurrency into spendable cash, alongside Chainlink (LINK) crypto and Ronin’s advancements.

Digital Assets

Court finally decides on Sam Bankman-Fried sentence, experts predict 20 years

Sam Bankman-Fried, the former CEO of the now-defunct cryptocurrency exchange FTX, is set to face sentencing on Thursday in a pivotal moment that could see the entrepreneur beginning a lengthy period in federal prison.

<