LSEG Debuts Trade Surveillance to Help Spot Financial Crime

Financial markets infrastructure provider LSEG has announced a new tool, called Trade Surveillance, designed to help spot and investigate market abuse and financial crime.

“As market behaviors and regulatory requirements evolve and place demand on financial institutions to identify market abuse and financial crime in increasingly sophisticated ways, traditional surveillance tools can be inefficient and costly,” LSEG said in a Tuesday (Jan. 13) news release.

“Addressing these challenges head-on, LSEG’s new offerings are built on a breadth of high-quality, trusted data, and leverage our proprietary surveillance technology which processes billions of trade and order messages across our venues every day.”

According to the release, Trade Surveillance offers clients alerts on their private trade data, as well as contextual public market data, reference data and news to allow for cross-venue alerts to help reduce false positives.

The offering includes two solutions: one for market participants trading MiFID (Markets in Financial Instruments Directive) instruments, and the other for spot FX (foreign exchange) participants on the LSEG FX Dealing, Advanced Dealing and Matching platforms, along with those trading on third-party venues captured by LSEG’s Trade Notification network.

“Ensuring compliance with the Market Abuse Regulation remains fundamental to firms with regulatory obligations,” said Bruce Kellaway, CEO, Regulatory Reporting Solutions, LSEG.

“With its methodology and data-sets aligned with UK and EU regulators, Trade Surveillance for MiFID offers a robust multi-market, cross-product and cost-effective solution that customers can adopt with minimal effort, to support firms in evidencing regulatory compliance.”

“In a fragmented FX market, context is vital to help assess and manage regulatory risk,” added Bruce Kellaway, CEO, Regulatory Reporting Solutions, LSEG.

“Trade Surveillance for FX brings together trusted data as well as activity across LSEG FX platforms and third-party venues, enabling participants to better analyse trading behaviour and make insight-based decisions efficiently.”

The launch comes at a time when many businesses are shifting their financial crime prevention spending from people to technology, as shown in the recent PYMNTS Intelligence report, “Orchestrating Trust: The Future of Fraud Prevention in Payments.”

“The report finds that fraud orchestration is emerging as a structural response to this new reality,” PYMNTS wrote. “Rather than relying on isolated tools or teams, orchestration functions as a command-and-control layer that coordinates identity checks, behavioral signals, machine learning models and payment routing in real time.”