FINRA to Provide Cross-Market Surveillance for BATS

BATS has signed an agreement with the Financial Industry Regulatory Authority (FINRA) to provide cross-market surveillance services to BATS’ four stock exchanges.
By Jake Safane(2147484770)
BATS has signed an agreement with the Financial Industry Regulatory Authority (FINRA) to provide cross-market surveillance services to BATS’ four stock exchanges—BZX, BYX, EDGX and EDGA, which will most likely go into effect in the first quarter of 2015, following necessary technical and operational configuration changes.

FINRA will also perform examination and disciplinary services for BATS effective immediately. With this agreement, FINRA now aggregates trading data from 99% of the market for U.S. listed equities, as the agency also has agreements with NASDAQ and NYSE Euronext. FINRA uses this data to conduct cross-market surveillance, facilitating detection of instances where a market participant engages in potentially abusive conduct on two or more markets in an attempt to avoid detection.

“FINRA’s comprehensive cross-market surveillance patterns will soon cover nearly 100 percent of the listed equities market. With this agreement, we will be better positioned to fulfill our mission of protecting investors by detecting and pursuing cross-market abuses and identifying new threats to the integrity of our markets,” says Thomas Gira, FINRA executive vice president, Market Regulation.

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