Thursday January 26 2017

News Source: Global Exchanges

Focus: Stock Exchange Regulation

Type: General




On 25th January 2017, the Autorité des Marchés Financiers (AMF) announced it was modernising its monitoring system to enhance its ability to detect, analyse and investigate suspicious activity by launching a new market surveillance system – ICY.

In the wake of the 2008 financial crisis, European lawmakers enacted financial market regulatory reforms. Following the adoption of EMIR for over-the-counter derivative trading, in early 2018 the revised MiFID II and MiFIR regulations will strengthen national regulators’ ability to perform their duties by giving them access to a wider scope of data. At the same time, the rise of algorithmic and high-frequency trading in more fragmented markets has contributed to higher order and trading volumes. In the near future, it is estimated that the AMF will collect 50 million messages daily.

ICY s the new monitoring system that AMF is developing internally with the backing of IT company Neurones. The new system will allow the AMF to quickly screen data representing large and varied trading volumes. Starting in the second half of 2017, ICY will gradually be rolled out to start receiving MiFID II data from 3 January 2018. Once the process is completed, the AMF will have significantly greater capacity to archive data and perform multivariate analysis, while also adding innovative new functions. The AMF hopes that this will reinforce its ability to examine transactions in real time, make it quicker to react, and improve the detection of market abuses through the use of artificial intelligence tools. This technology will make it possible to automatically adjust certain detection models, for example, the one used for price manipulation.

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