How Does Cross-Market Surveillance Address Manipulation That Spans Multiple Exchanges or Assets?
Cross-market surveillance involves monitoring and analyzing trading data across different exchanges, asset classes, and sometimes even different jurisdictions. This is crucial because manipulative schemes, such as price manipulation or wash trading, often involve coordinating trades across multiple venues to obscure the activity or maximize impact.
By aggregating and correlating data, surveillance systems can detect patterns that would be invisible when looking at a single exchange.
Glossar
Trade Reconstruction Process
Provenance ⎊ Trade Reconstruction Process, within cryptocurrency and derivatives, establishes a verifiable audit trail of a transaction’s lifecycle, crucial for resolving discrepancies and ensuring regulatory compliance.
Multiple Exchanges
Redundancy ⎊ Operating across multiple trading venues provides essential redundancy, mitigating the risk of a single point of failure impacting a trader's entire position or collateral base.
Cross-Market Surveillance
Framework ⎊ Cross-market surveillance, within the context of cryptocurrency derivatives, options trading, and broader financial derivatives, represents a holistic risk management approach extending beyond isolated market monitoring.
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.