Market Surveillance & Enforcement

Market Surveillance

This involves the monitoring of Members’ trading activities to ensure transparency, credibility and integrity in the OTC financial markets. The key thrust of the market surveillance function is preventing fraudulent, manipulative and abusive trading practices. Market surveillance is implemented through a two-step process which consists of real-time market monitoring and post-trade data analysis.

These steps are achieved through:

  • 1.Monitoring price and volume movements, as well as detecting potential market abuse, such as, but not limited to, fictitious/artificial transactions and creating a false or misleading appearance of liquidity of a product
  • 2.Detecting and reacting to Members’ actions that might be detrimental to the market
  • 3.Analysing post-trade data to identify trends and detect abnormal trading activities

Enforcement

This ensures that FMDQ’s regulated Members fulfill their obligations under the pre-defined regulatory framework of the OTC Exchange. The FMDQ enforcement regime employs sanctions and other disciplinary measures to achieve its objectives.

See FMDQ Rules for more information on sanctions and FMDQ’s Whistleblowing Policy to report suspected unethical practices.