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Thomson Reuters to Host Market Surveillance

March 1, 2011
Chris Kentouris
Thomson Reuters on Tuesday said it will offer its customers access to trade monitoring firm Redkite's surveillance software as a managed service within the Elektron network and hosting environment.

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Users of Redkite’s Redeye, also available on a licensed basis, will now have access to a fully-managed package powered by Thomson Reuters real-time pricing, news and tick history data. In monitoring trades, orders, market data and news events in real-time or at the end of the business day, Redeye can generate alerts identifying suspicious transactions or activity that suggests possible market abuse or manipulation.

“Globally, we are seeing increased demand for improved surveillance products and processes in the face of imminent market structure changes,” says Mike Powell, global head of enterprise real time solutions at Thomson Reuters. “The combination of Thomson Reuters Elektron and Redeye will provide a high performance solution to support customers’ trading workflow and better enable them to meet new regulatory requirements.”

Thomson Reuters launched Elektron last April as an ultra-high speed network and hosting environment that enables financial firms to trade faster using the most complete coverage of real time financial information, connect to more markets and interact freely across a global secure cloud.

A recent study released by Tabb Group, a New York-based industry research and consulting firm, predicts that U.S. and European brokers will spend $206 million in 2011 on new market surveillance programs. Spending, Tabb said, will growth at a rate of 14 percent a year after that leading to $268 million in 2013.

The growth is being spurred by hundreds of laws yet to be written and rules to be implemented in the wake of the Dodd-Frank Wall Street Reform Act in the U.S. and the second edition of the Markets in Financial Instruments Directive in Europe. The new rules require collecting, collating, analyzing, storing and retrieving more detailed data, as well as the ability to prove that internal trading and risk control practices. The flash crash of May 6, when an algorithm used by an asset manager had a damaging market impact, is also prompting firms to take a closer look at surveillance.

http://www.securitiestechnologymonitor.com/news/-27186-1.html?source_dept=trading

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