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Kazakhstan Stock Exchange Turns To Scila AB For Surveillance Tool

source-logo  financemagnates.com 29 December 2021 03:14, UTC

On December 28, Kazakhstan Stock Exchange (KASE) entered an agreement deal with Swedish software developing company Scila AB to use the Scila surveillance technology solution to combat unfair practices in the exchange market.

Scila AB, a major software firm based in Stockholm, Sweden, offers surveillance software solutions for financial institutions. It serves firms in industries including regulatory authorities, hedge funds, major exchanges, small brokerages, and large investment banks.

The Kazakhstan Stock Exchange agreed to use Scila surveillance solution to counteract cases of attempted market manipulation, insider trading, and other market abuses. The exchange joins a series of global exchanges including the Cyprus Stock Exchange, Vienna Stock Exchange, Deutsche Börse, New York Stock Exchange, and London Stock Exchange, which use the Stockholm-based firm’s solution.

Alina Aldambergen, Chairperson of KASE's Management Board, talked about the development and said: "The chosen system will allow the Exchange to reach a qualitatively new level of protection of the local market from manipulation. The use of the latest technologies in the field of financial services expands the capabilities of participants, raises the level of service standards and, accordingly, the requirements of the market as a whole".

Meanwhile, Lars-Ivar Sellberg, Executive Chairman and one of Scila co-founders, also commented about the development and stated: "Kazakhstan is the largest economy in Central Asia and a leading capital market in the region. KASE offers a wide range of products and instruments in various asset classes, and we look forward to a long-term partnership with KASE."

Scila Surveillance is a high-tech solution for real-time surveillance, which many companies are using in their business facilities in more than 20 countries. Market participants, regulators, and trading avenues use the solution to detect and present evidence of market abuse, and therefore maintain market integrity and build investors’ trust. The solution monitors traditional market abuse like layering, spoofing, and insider trading and high-frequency trading based on various trading statistics and best execution compliance.

The surveillance solution covers asset classes such as foreign exchange, energy and emissions, fixed income, commodities, equities and derivatives, and money market. Its market coverage includes voice trading, over the counter (OTC) trading off exchange, continuous trading on exchange, request for quotes (RFQs) and auctions.

Insider Trading In Stock Market

The development by The Kazakhstan Stock Exchange comes at a time when most US citizens believe that the stock market is rigged, and they are right. Market abuses happen on Wall Street and are common among corporate executives, and nobody – not the Justice Department, not regulators, and not companies themselves – is doing anything to stop it. For instance, insider trading refers to trading in securities like bonds and equity by company insiders who have access to exclusive information about the issuer of a particular security before such information is released to the general public. This allows insiders to benefit from selling or purchasing shares before they fluctuate in price. Such market abuses are common as they are practiced by various regulatory authorities, corporate officers, and market participants.

Primary insiders gain access to information by virtue of their responsibility, employment, or job positions. They include controlling shareholders, corporate officers and executives, and also financial market professionals who compile information in a company’s operation. Government officials who have access to insider information are also included in this category.Secondary insiders are relatives and friends of primary insiders. In order to minimize the likelihoods and risks of insider trading and market manipulation, organizations like Scila AB help to introduce effective protections. Potential compliance measures include policies, appropriate sanctions, awareness training, monitoring mechanism, and reporting systems.

financemagnates.com