FINRA, recently, announced that it was developing a cross market surveillance system that will allow it to detect and stop improper conduct. This was reported by FINRA Chief Executive Officer, Richard Ketchum.
This new system will expand FINRA’s surveillance and enforcement of the New York Stock Exchange, as well as its own order audit trail system to include New York Stock Exchange data. FINRA believes that, with the combination of both, it will be able to effectively monitor equity trades and data to allow it to see patterns ahead of or in conjunction with the market, as opposed to reviewing it after the fact. Ketchum suggested that this new surveillance system would possibly assist FINRA in achieving the SEC’s goal for a consolidated audit trail system.
This new system may significantly reduce FINRA’s expenditures on examinations, and bring to light unscrupulous activity in the market in time to protect those effected.