Firms get smart to hunt down naughty traders

Trading Desk

'The days of traders saying something really dumb, which then gets picked up by a filter are largely gone'.

Bankers beware – big data are watching you.

The Financial Times reports that a recent swath of trading scandals has spurred big banks to turn to new technology and data sources as they attempt to crackdown on illegal behaviour by their staff.

Financial institutions are increasingly moving beyond employing traditional compliance systems, which have focused on monitoring electronic communications and transaction prices, and using state of the art surveillance software as they seek to stay one step ahead of wily bankers and traders.

The worry now is that bank employees will go underground to engage in illicit behaviour, prompting an internal race as compliance officers seek to root out malfeasance by 'front office' staff.

'The days of traders saying something really dumb, which then gets picked up by a filter are largely gone', said Michael O’Brien, global head of SMARTS Broker, Nasdaq’s market surveillance business.

Hit the link below to access the complete Financial Times article:

Banks tap into big data to trap wily traders

Banks warned on putting pressure on regulators

 

JefferiesAnd the Best Place to Work in the global financial markets 2016 is...

Register for Financial Markets News Alerts