Franc’s AMF to Launch its 'I See Why' Surveillance System in Mid-2017

France’s financial markets regulator, the Autorité des Marchés Financiers (AMF), today said it will implement a new market surveillance system for the country's financial market, dubbed the 'ICY system'. The system was developed internally with the backing of IT company Neurones, and will be rolled out gradually effective from the second half of 2017.

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The French regulator says the new monitoring system is in line with its commitment to investor protection and to ensure a fair and orderly market as well as a more facilitative trading environment for investors.

The ICY system, the name a play on the words 'I see why', will allow swifter implementation of changes in EMIR Regulation Regulation Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Like any other industry with a high net worth, the financial services industry is tightly regulated to help curb illicit behavior and manipulation. Each asset class has its own set of protocols put in place to combat their respective forms of abuse.In the foreign exchange space, regulation is assumed by authorities in multiple jurisdictions, though ultimately lacking a binding international order. Who are the Industry’s Leading Regulators?Regulators such as the UK’s Financial Conduct Authority ( Read this Term for over-the-counter derivative trading. Additionally, the custom-built system, which will start receiving MiFID II MiFID II MiFID II stands for the Markets in Financial Instruments Directive, and is the second iteration of a sweeping directive. As such it is known as MiFID II. The original Markets in Financial Instruments Directive (MiFID) became effective in November 2007. It was intended as the foundation of the EU’s Financial Services Action Plan, a comprehensive project to create a single European market in financial services. MiFID is intended to create a level playing field for firms to compete in the EU’s fina MiFID II stands for the Markets in Financial Instruments Directive, and is the second iteration of a sweeping directive. As such it is known as MiFID II. The original Markets in Financial Instruments Directive (MiFID) became effective in November 2007. It was intended as the foundation of the EU’s Financial Services Action Plan, a comprehensive project to create a single European market in financial services. MiFID is intended to create a level playing field for firms to compete in the EU’s fina Read this Term data from January 2018, will be able to handle the continued increase in AMF’s duties with its system currently analysing nearly 1.6 million transactions and generating – on average – 36,000 alerts annually.

The new market surveillance system is designed to capture transactions in real time, root out market irregularities, and automatically adjust certain detection models, says the AMF. The ICY system processes significant volumes of market information in real-time for the watchdog to detect market manipulation and also includes tools that allow AMF analysts to make sense of the vast amounts of data for investigative purposes.

The system will be able to archive data and perform multivariate analysis, as well as adding innovative new functions to help the AMF identify behaviour patterns rapidly. It also includes a comprehensive set of artificial intelligence tools that have the capability to promptly reconstruct activities of the market as it occurs, allowing each transaction to be closely reviewed.

Alexandra Givry, Head of the Market Surveillance Department, commented: "Financial markets are increasingly automated and fragmented. In this environment, detecting insider trading and market manipulation requires sophisticated, innovative tools able to decrypt complex, unstructured data. ICY will enable the AMF to exploit the large amounts of available data and thus better execute its market surveillance and investigation activities. It will also strengthen its capacity to analyse market trends and the impact of regulation”.