How Do Surveillance Systems on CEXs Enforce MAR Principles?
Centralized exchanges use sophisticated trading surveillance systems that monitor real-time trading data for patterns indicative of market abuse. These systems employ algorithms to detect activities like wash trading, spoofing, and front-running by analyzing order book changes, trade volumes, and user activity.
When a suspicious pattern is flagged, the exchange's compliance team investigates and may report the activity to regulators, thus enforcing the principles of fair trading required by MAR.
Glossar
Cexs
Platform ⎊ Centralized Exchanges (CEXs) serve as the primary trading platform for a vast majority of cryptocurrency spot, options, and futures contracts.
Trading Surveillance Systems
Framework ⎊ Trading surveillance systems, within the context of cryptocurrency, options, and derivatives, represent a layered framework designed to detect and deter market abuse, encompassing anomalous trading patterns and regulatory non-compliance.
Surveillance Systems
Framework ⎊ Surveillance systems, within cryptocurrency, options trading, and financial derivatives, increasingly rely on a layered framework integrating real-time data feeds, algorithmic anomaly detection, and robust reporting mechanisms.