Surveillance in Foreign Exchange Markets

Set out in this document are a set of core principles for surveillance that firms may wish to adopt in order to identify, determine and establish an effective surveillance function, which includes, but is not limited to:

  • Preserving independence from front office to allow a surveillance function to be effective;
  • An effective surveillance operating model (including how responsibilities and interactions occur between the first and second lines of defence);
  • An understanding of where surveillance can be used as an effective control and would strengthen the overall control environment;
  • A determination of where automated surveillance would provide a more comprehensive and effective control than manual surveillance; and
  • An appreciation that an effective surveillance function will differ depending on the nature, extent and sophistication of the business conducted by each market participant.

Surveillance in Foreign Exchange Markets

Set out in this document are a set of core principles for surveillance that firms may wish to adopt in order to identify, determine and establish an effective surveillance function.

Last updated 13 May 2020