Market abuse has long plagued the financial services industry, often resulting in enforcement actions and regulatory requirements for firms to implement surveillance programs. Although the common perception is that regulation is now on the decline, it is not expected that market integrity enforcement will slow down. In fact, in recent years, regulators have increasingly focused on leveraging new technologies to identify potential misconduct and firms should anticipate that regulators will expect the same of them.
Firms can respond to these regulatory expectations as well as address gaps in their surveillance programs by taking advantage of a wave of new regulatory technologies, or RegTechs, that have been flourishing in this space. Although many of the RegTech solutions are still new and not yet scaled, their growth is creating new opportunities for firms to rethink and optimize their surveillance systems and processes.
This Regulatory brief outlines challenges in market abuse surveillance and trends in regulatory technology that can help address them.
A publication of PwC's financial services regulatory practice
Financial Services Advisory Leader, PwC US
Tel: +1 (646) 471 4771