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Market Surveillance
This involves the monitoring of Members’ trading activities to ensure transparency, credibility and integrity in the FMDQ markets. The key thrust of the market surveillance function is preventing fraudulent, manipulative and abusive trading practices. Market surveillance is implemented through a two-step process which consists of real-time market monitoring and post-trade data analysis.
FMDQ Exchange’s market surveillance supports the Exchange’s goal of achieving the IOSCO objectives of securities regulation. The objectives of FMDQ Exchange’s market surveillance include:
Prevention of market abuse and trade manipulation
- Improve the credibility/trust of stakeholders in FMDQ Exchange market
- Safeguard the interest of investors
- Preserve investors capital
Ensuring integrity of market information
- Ensure market information is relevant for decision making
- Ensure market information reflects activities on the Exchange
Maintenance of fair and orderly market
- Ensure that investors can enter/exit the market with minimal loss in asset value
- Ensure that investors are always provided with the best market prices
- Trade Monitoring – Monitor trading venue activities using automated or manual means to detect trade manipulation, market abuse, etc.
- Trade Review – Identify exceptional trading activities, investigate, and analyse suspected cases of trade manipulation or market abuse
- Notification – Notify Dealing Member(s) of observed contraventions
- Market Intelligence – Get a sense of market events in a bid to understand and monitor the market, either through the news review, interaction with market participants, etc.
- Market Level Monitoring and Market Intervention – Monitor market level participation, volatility and intervening when situations warrant, in line with the market intervention framework.
- Online Real Time Surveillance
- Offline Trade Review
Enforcement
FMDQ Exchange’s enforcement plays a key role in the Exchange’s objective of protecting investors through fair, transparent, and competitive markets. It seeks to protect investors by ensuring that market participants comply with established rules and regulations.
FMDQ Exchange identifies and prosecutes Members’ regulatory misconduct and pre-emptively disrupts potential misconducts. This sends a strong regulatory message that deter potential wrongdoers and promote a culture of compliance and helps to build investor confidence within the FMDQ Exchange markets.
FMDQ Exchange identifies and prosecutes Members’ regulatory misconduct and pre-emptively disrupts potential misconducts. This sends a strong regulatory message that deter potential wrongdoers and promote a culture of compliance and helps to build investor confidence within the FMDQ Exchange markets.
Enforcement Approach
In carrying out its enforcement action, the Exchange strives to ensure that its processes and actions are effective, timely, fair, and transparent.
It utilises the applicable Infractions and Penalties guide in enforcing sanctions.
Types of Penalties
The types of penalties that may be imposed by FMDQ Exchange under its rules include the following:
- Warning letters
- Fines
- Public Censure
- Suspension of Membership
Consultation with the Securities and Exchange Commission and Other Related Law Enforcement Agencies
In initiating and undertaking enforcement, where necessary FMDQ Exchange consults with the Securities and Exchange Commission and other related Law Enforcement Agencies to ensure effective regulation of the capital market.
FMDQ Securities Exchange takes disciplinary actions against its Members for violations of FMDQ Exchange rules and regulations. View monthly compilations of disciplinary actions against its Members for violations of the Exchange rules and regulations.
| Title | Size | Download |
|---|---|---|
| Enforcement Statistics – May 2023 | 134.41 KB | DownloadPreview |
| Enforcement Statistics – April 2023 | 134.25 KB | DownloadPreview |
| Enforcement Statistics – March 2023 | 134.76 KB | DownloadPreview |
| Enforcement Statistics – February 2023 | 135.00 KB | DownloadPreview |
| Enforcement Statistics – January 2023 | 135.56 KB | DownloadPreview |
| Enforcement Statistics – December 2022 | 134.29 KB | DownloadPreview |
| Enforcement Statistics – November 2022 | 134.02 KB | DownloadPreview |
| Enforcement Statistics – October 2022 | 134.56 KB | DownloadPreview |
| Enforcement Statistics – September 2022 | 129.08 KB | DownloadPreview |
| Enforcement Statistics – August 2022 | 130.93 KB | DownloadPreview |