Shield FC

On the flip side, as in the case of the four Danish securities brokers recently cited for non-compliance despite these laws and efforts to comply with them, inadequate systems and efforts were exposed. For one year, November 2018 – November 2019, the Danish Financial Supervisory Authority (FSA) conducted an inspection of market surveillance systems employed by four securities dealers. Additionally, explicit details which better describe “adequate” monitoring surveillance plus reporting, and the consequences of not having adequate technology systems and processes in place, could be of benefit to financial institutions. The key takeaway is that AI-enabled technology does exist to monitor, detect and report abuse – of all forms, including financial market manipulation – across all forms of e-Comms.

Shield and its platform have been recognized by a number of awards including wins for the ‘Best Data Visualisation Provider’ in the Data Management Insight Awards 2019, Best Regtech Platform 2019’ by Juniper Research’s Future Digital Awards, and as ‘Best Financial Compliance Solutions Provider 2019 – Additionally, Shield has been recognized as one of the winners in the Deloitte RegTech Challenge, which highlighted 40 of the most innovative start-ups using Artificial Intelligence (AI) to solve regulatory problems in the financial sector. Shiran added, “Having launched Shield as a bootstrapped business back in 2018, we have developed a market-leading platform, we are now entering our Round A funding which will give our company the full backing to reach the next phase of development.

Capital Markets is the structure given to the sale, purchase, and exchange of securities, stocks and other financial instruments in order to raise money or capital. With processing time taking a matter of days, verifying the people executing trades becoming more laborious coupled with a chequered history of asset ownership stored in a mainly paper-based system it becomes a troublesome task to allow the markets – in the words of Economist, Adam Smith – to operate As clearing and settlement services are critical for Capital Markets (especially in securities) operations, the DTCC, the Depository Trust & Clearing Corporation responsible for post-trade clearing in Financial Markets, recognise the need to manage risk effectively. While Blockchain’s potential impact on Capital Markets is undeniable, to answer the question of how Blockchain can impact Capital Markets it can be done through fast and efficient processes that are embraced across the industry.

As the Dodd-Frank Wall Street Reform and Consumer Protection Act (the Act) approaches its 10th anniversary, it’s an appropriate time to take a look at how the Act has fared with respect to its impact on market abuse. However, despite advances in technology, including efforts to monitor communications between suspected spoofers, numerous examples at the individual and financial institution level continue to be reported, and, with increasing frequency. Three more years passed before a regulatory body, in this case, the Commodity Futures Trading Commission (CFTC), finally defined the rules and consequences for violating terms of the Act in 2013. Shortly thereafter, the Intercontinental Exchange followed suit in 2015 with clarifications regarding the practice of placing a large order to buy or sell a financial asset (stock, bond or futures contract) with no intention of executing the transaction.