The importance of specialised standard software for MAD/MAR compliance
The EU Market Abuse Regulation (MAR II/MAD) has created a uniform legal framework and catalogue of criminal law for the prohibition of market manipulation and insider trading since 2016.
Moreover, financial institutions have been obliged to take active and proactive measures in order to avoid these criminal offences in their own backyard. The amendments pose significant challenges for the financial industry, especially the banking sector, and their IT systems. Traditional methods for monitoring securities compliance are no longer effective here – therefore, new procedures have to be implemented. Almost three years later, it is time to take stock of the success of MAD/MAR and of the current market developments.
The burst of the real estate bubble in the USA resulted in a rapid increase of the interest for interbank financial loans and in a strong decline of the trust in the financial world and its players. The crisis peaked when the major US bank Lehman Brothers crashed in September 2008, entailing enormous economic and reputational damage which probably has not been repaired to this day. The consequences were not limited to the US, but soon reached Europe as well.
In the aftermath of the crisis, it was revealed that there had been faulty risk assessment regarding complex financial products, countless violations of rules of conduct and criminal offences in the area of market and benchmark manipulation. Since the public had become increasingly critical of the financial industry, numerous rules were adopted or tightened on a national and international level in order to guarantee the financial sector‘s more effective operation in the future.
The Austria based Software Company SDS (Software Daten Service Gmbh) continuously sets digital standards in advanced solutions for securities processing, regulatory and compliance solutions for the international financial industry. SDS’ latest Whitepaper on MAD/MAR compliance concisely summarises the most significant findings and experiences from three years of practical application and also provides approaches for the automated monitoring of securities and derivatives transactions.
The SDS Whitepaper on MAD/MAR compliance concisely summarises the most significant findings and experiences from three years of practical application.
Download your free copy on our White Paper here for more.