Come January, the Securities and Exchange Commission (SEC) says it will be installing an electronic surveillance system in a bid to detect market manipulation and insider trading in a more effective manner, according to a SEC official.
“So far we have been doing it manually and with this transition we can monitor and detect market manipulation and insider dealing better. We are signing the agreement with Millennium IT to develop a system for the SEC on October 20,” Channa de Silva, Director General SEC told the Sunday Times FT.
He explained that it will take about three months to put the systems in place. “We will be implementing this system in January 2010,” he said.
He said it is a Rs. 20 million investment, adding that the proposed system identifies unusual trading patterns, such as chronological connections with customer orders. He said that this IT-driven system will replace the manual checking system that is currently in place to monitor market manipulation and insider dealing.
“Market misconduct, particularly in the form of insider dealing and market manipulation is, put simply, cheating and reduces investor confidence. This system will help the SEC to identify the signs of insider trading and market abuse,” he explained. |
E-mail