ACA Group Unveils Market Abuse Risk Framework for Buy-Side Firms: A Comprehensive Solution for Navigating Complex Trading Environments
In a significant development for the financial services industry, ACA Group, a leading provider of governance, risk, and compliance services, has launched its Market Abuse Risk Framework. This innovative solution is designed to empower UK and European regulated buy-side firms in their efforts to identify, manage, and monitor market abuse risks across a wide range of trading activities.
The framework combines advisory services, outsourced managed support, and cutting-edge regulatory technology, enabling firms to address findings and enhance surveillance throughout the entire trading lifecycle, from pre-trade to post-trade. With increasing regulatory scrutiny and investor demands, firms are under pressure to demonstrate robust controls and frameworks aligned with the Market Abuse Regulation (MAR), MiFID II, and the Senior Managers and Certification Regime (SM&CR).
The Market Abuse Risk Framework stands out for its depth of expertise, developed by practitioners with extensive experience in the buy-side sector. It provides a structured, regulator-ready framework that integrates surveillance, conduct, and control reviews, reflecting real-world insights into market abuse risks and effective management strategies across various asset classes and trading approaches.
Key Features of the Framework:
- A proprietary matrix that maps market abuse offences against trading activities across all asset classes.
- Comprehensive reviews of surveillance systems, policies, and procedures, including Suspicious Transaction and Order Reports, information barriers, and related policies.
- Coverage of public and private assets, real assets, exchange-traded funds (ETFs), custom baskets, and algorithmic and quantitative strategies.
- Evaluation and review of surveillance technology to ensure alignment with the firm's market abuse risk profile and internal policies.
- A question bank informed by ACA's industry expertise, regularly updated through client interactions.
- A reusable risk framework document with guidance on maintenance and updates.
This framework is part of ACA's comprehensive suite of solutions, aiming to help firms not only identify market abuse risks but also take proactive measures to address them. Through the ComplianceAlpha® regulatory technology platform, ACA offers integrated surveillance and monitoring capabilities across the entire trade lifecycle, including trade and eComms surveillance, conflicts of interest, expert networks, and research meetings. These tools can be seamlessly integrated with outsourced managed services and practitioner-led advisory support, enabling firms to remediate findings, strengthen governance frameworks, and maintain ongoing compliance with evolving regulatory standards.
As the financial landscape continues to evolve, ACA Group's Market Abuse Risk Framework is a valuable resource for buy-side firms, providing the expertise and tools needed to navigate complex trading environments with confidence and compliance.
