Surveillance technology could create financial market transparency, report shows

5 May 2010

Greater adoption of surveillance technology would help reduce levels of market abuse, a financial technology expert has claimed.

Dr Giles Nelson, deputy chief technology officer at Progress Software, made the comments as part of a study into regulation surrounding European markets.

Findings from the study revealed that three-quarters of respondents thought that real-time monitoring systems should be utilised to detect market abuse rather than further rules and regulations.

Over half of those professionals questioned said their organisation would back proposals for regulators to have access to real-time information on trading activity.

Dr Nelson said: “Technology that provides surveillance of the market in real time is available, and can be used across the financial services sector to provide reassurance to banks, customers, regulators and governments alike.

“Having identified the need, each participant needs to take responsibility for creating a more transparent, open world in which to operate. Only then can we stay one step ahead of the insider traders in order to prevent criminal activity before wreaks havoc.”

Further findings from the report showed that nearly a quarter wanted to see a ‘super regulator’ put in place in Europe to oversee the financial markets.

By Jim Ottewill

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