New Change FX, a benchmark data provider to the institutional FX industry, announced this Monday that it is launching a surveillance and detection service. The new service is the result of a partnership made by the data provider with Raidne – a firm specializing in quantitative surveillance.
The need for this new service stems from ever-increasing demands by regulators for increased surveillance. With the implementation of the Markets in Financial Instruments Directive II (MiFID II) coming into effect in January, regulators are now asking for surveillance capabilities that cover all scenarios, data sources and communication channels.
New Change FX and Raidne’s partnership will see both companies contributing their services to enable clients to meet those regulatory demands.
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New Change FX data, Raidne Analytics
On the one hand, New Change FX can provide a plethora of FX trading data. On the other, Raidne can use its software and analytical capabilities to analyze that data and ensure compliance procedures are being carried out properly.
“Using NCFX independent data in conjunction with Raidne surveillance algorithms enables market participants to rapidly identify issues whilst validating the bulk of trades,” said Andrew Woolmer, CEO New Change FX. “This means monitoring is much more efficient.”
According to a statement released by New Change FX on Monday, the surveillance system – which the company described as an “advanced protection system” – has been designed to improve front office control. On top of this, the protection system will aid compliance and operational risk divisions.
“Raidne algorithms use quantitative techniques to reveal insights in the market microstructure,” said Dr. Jamie Walton, Co-Founder of Raidne and Former Head FX and rates quant at Morgan Stanley. “We give you the power to see more clearly, and reduce the burden of false positives.”