How Firms Can Participate In Ensuring a Free and Fair Market

As the world becomes a business hub, firms are making transactions globally. There is a tremendous increase in trade transactions all over the world. The financial exchange market has transformed over the years with the use of technology to ease the way of doing business. Beneath this increased profitability, it is becoming imperative for trade surveillance system to be enhanced to deal with any eventualities. The organization needs to empower and give the capacity to oversight department to monitor the trades through regulations and the abusive use of technology. Some of the ways the organization can increase the effective trade market surveillance in order to curb unfair trade practices using market abuse technology are listed below.

- With tough laws and regulations, the organizations need to ensure that employees conduct pre -trade market surveillance to ensure that transactions are conducted within the law to prevent any breach of policies that may occur in the process. This will boost investor trust leading to business profitability.

- With the post - surveillance, it monitors the transactions already conducted in companies to ensure they were done correctly following the laid down rules and regulation. This creates a market that is controlled and guiding principles are followed to the latter.

- Business is created with the core mandate of making profit, with an effective market security system installed in the organization structure; the company can know the strength and weakness which need to be addressed for effective market observation in the business trading.

- A good detection will enable a host company to notice any rogue under-dealings and manipulations of activities happening during trading activities.

- The business, through the use of advanced technology, can install a system with a standardized threshold which will be triggered whenever a rogue activity is undertaken in the organization.
- Management should frequently and timely analyse trade activities, reports and monitor the trading patterns to be able to know what is being undertaken by the employees of the organization. The behaviour of the workers should be monitored.

- Investigate, analyse and resolve promptly the cancelled trades in good time to keep the reputation of the organization intact.

- Before traders are able to invest their money, the organization should ensure that the investor has the needed amount which reaches the threshold, and it does not surpass the trading limit. This will make sure that the client does not pay less or more during the trade process.

In conclusion, it is important that the organization managers enlighten the workers about the benefits of using market abuse technology to increase trade surveillance and at the same time the firm should motivate employees to be able to reduce cases of abuse of technology during trade activities.

By Pankaj Pk Sharma