Ideal Prediction, the independent trading analysis and data science company for capital markets, announced the launch of Scope, an automated monitoring service, which analyzes the behaviors of voice traders and trading algorithms in line with the principles of the FX Global Code (FXGC).
Already in production, Scope automatically monitors order and trade activity, evidencing that humans and algorithms adhere to governance and risk controls. It specifically highlights potential issues like last look, spoofing, flashing, layering, order violations, limit breaches, and P&L flags.
The FXGC was launched in May 2017. It is a set of global principles, developed in partnership by Central Banks and Market Participants to provide a common set of guidelines, which promote the integrity and effective functioning of the wholesale FX market.Market Participants are expected to review the behaviors of humans and algorithms, embed the principles into their day-to-day operations, sign a commitment to the FXGC, and post such evidence on public registers.
“Since the release of the FXGC, our firm has focused on evidencing adherence to the principles, but the service additionally helps senior management sleep at night,” said John Crouch, Founder and CEO of Ideal Prediction. “Clients specifically value the independence of our service, in addition to our analytics technology and high-frequency trading expertise.”
Ideal Prediction is further refining Scope, by adding checks that are collaboratively defined and agreed. It isworking with a group of top tier banks, tocreate collective standards.
John Crouch added, Not every check has a clear definition, so we collaborate with the FX community to provide standardized as well as custom checks appropriate to each firms business.