A common thread for Asian regulators is that firms should focus on building out data and surveillance infrastructures to detect and mitigate risks relating to market abuse and AML/CFT efforts. Most importantly, regulators are focused on the expanded capability and use of technology to detect and mitigate relevant risks. This is well reflected in the following two examples:
1) The 2020 MAS Enforcement Report reflects a continued focus on both market abuse and AML/CFT, but also discusses expanded efforts to improve its technology. MAS dedicates a whole section to “Leveraging Technology” to monitor the market. This includes a description of their “Project Apollo,” which was officially launched in April 2020. “Project Apollo is an Augmented Intelligence system that automates the computation of key metrics used in the analysis of suspicious trading activities, and assesses the likelihood that certain types of market manipulation have occurred.”
2) Like the MAS, the SFC is similarly focused on market abuse, AML/CFT, and improved technology. In its 2020 Annual Report, its strategic priorities section addresses each of these concerns. The SFC announced a reorganization of its market surveillance and investigation functions by forming a Market Misconduct Team. They announced efforts to further align their AML/CFT program with FATF standards. Finally, they cited a number of technological improvements to keep pace with data challenges and technological innovations in the market.
ViP: Validus supports the demands of a broad range of firms across geographies and asset classes. Transacting in Asia means the need for flexibility to quickly deploy and customize surveillance technology based on the requirements of each jurisdiction or venue. In addition to the many pre-built procedures for market abuse and AML/CFT, our client relationship managers work closely with each of our clients to fulfill their specific needs. Our fully developed Python integration allows clients to customize our many pre-built procedures, as well.