ACA Technology Solutions has enhanced its trade surveillance product, Decryptex, to assist global clients in meeting the EU’s current Market Abuse Regulation (MAR) requirements and the EU’s upcoming revision to the Markets in Financial Instruments Directive (MiFID II).

Decryptex is developed in conjunction with ACA Compliance Group’s regulatory consulting team, providing clients with advanced trade surveillance tools that are designed with fundamental input from those with relevant regulatory and compliance expertise.
 
In this release, Decryptex users can deploy algorithms designed specifically to identify potential market manipulation, fairness in dealing, and potential use of material non-public information (MNPI).
 
Decryptex processes data from various sources and runs algorithms to detect evidence of spoofing, order bursts, momentum ignition, marking, crossing, contra trades, allocation pre-positioning, and employee front running and collusion. The system flags suspicious activity and visualises the timeline of events and actions.
 
“These new algorithms will assist our clients that trade in the EU and who hold EU positions in meeting the MAR requirements around prevention and detection, in addition to helping them identify suspicious activity,” says Michael Lehman (pictured), partner at ACA Technology Solutions. “In addition, MiFID II’s new transparency requirements in non-equity products will determine what data is gathered by this technology and will enhance our clients’ trade monitoring capabilities.”
 
Ron Weekes, partner and CEO of ACA Compliance (Europe) Limited, says: “Alongside the MAR requirements, MiFID II brings additional trade reporting obligations and an explicit need for certain firms to employ automated post-trade surveillance technology. Decryptex meets those needs and is a welcome addition to our existing compliance consulting solutions.”