How Can Cross-Market Surveillance Be Used to Detect Manipulation That Spans Multiple Exchanges?

Cross-market surveillance involves monitoring trading activity across various exchanges and trading venues simultaneously. This is used to detect sophisticated manipulation schemes, such as 'spoofing' or 'layering,' that might involve placing orders on one exchange to influence the price on another, or front-running that involves exploiting information across different platforms.

By analyzing aggregated data, regulators and exchanges can spot coordinated activities that would be invisible if only one market were monitored.