The Swedish company Cinnober, which supplies a big chunk of the global banking industry with multi-asset financial technology, and London-based Ancoa Software have teamed up into a partnership.
Cinnober has been delivering technology to market operators, clearing houses, banks and brokers, while Ancoa is a provider of contextual surveillance and analytics tools for exchanges, regulators, buy and sell-side firms.
The companies have signed a global distribution agreement, with Cinnober offering their banking sector customer base Ancoa’s full breadth of market surveillance solutions. If a client of Cinnober signs up for the service, the Swedish company will deliver operational support for Ancoa’s surveillance platform.
Ancoa’s surveillance platform is already fully integrated with Cinnober’s technology. Both companies will continue to pursue their own strategic business development objectives in addition to their joint collaboration as the agreement is non-exclusive.
Cinnober’s CEO, Veronica Augustsson, said in the announcement, “Collaborating with Ancoa to deliver market surveillance to banks is a strategic decision for Cinnober. This complements our existing technology capabilities and will primarily be delivered as a service through our subsidiary ‘Boat Services’.”
“Ancoa’s ability to integrate non-standardized data sources into their surveillance platform, including electronic and voice communications as well as news and social media sources, are key to the surveillance needs of the banking segment,” she explained.
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Complex organizational structures within an increasingly fragmented market place have been at the forefront of the failure of major banks to prevent fraudulent practices conducted by traders. LIBOR and foreign exchange fixings manipulation has cost the industry billions of dollars and huge reputational damage.
Demand for a contextual approach to surveillance capabilities has been growing, especially in the increasingly scrutinized banking sector.
As a result, monitoring for manipulative trading practices to prevent potential market abuse not only needs to be conducted enterprise-wide, but also needs to encompass non-traditional information streams. Traditional data sources such as market data, order management system entries and financial news, need to be contextualized against all electronic communication such as email, instant messaging, voice communications and social media interactions.
Doing so enables firms to close existing regulatory and operational gaps and detect irregular behaviour that requires further investigation.
Cinnober’s offering includes multi-asset solutions for banks and brokers enabling efficient set up of execution services and market integrity solutions that ensure compliance with regulations, trading rules and internal policies. Customers include some of the largest and most demanding players in the international financial market.
Commenting on the partnership, the CEO of Ancoa, Kurt Vandebroek, said, “At a time of intense regulatory scrutiny for the global banking sector, demonstrating robust, firm-wide monitoring and surveillance capabilities that deliver actionable insights and prevent potential market abuse are a regulatory requirement. We look forward to working with Cinnober’s financial technology team to help their customers meet their regulatory obligations.”