European trends in market abuse and trade surveillance

Published October 2024

The European regulatory landscape is evolving at a rapid pace. Regulators and firms alike are having to adapt to new legislation, innovative technologies, and a series of global shocks that have caused huge political, societal and economic instability. As a result, financial institutions need to navigate a complex regulatory landscape while also understanding the unique approaches taken by major European regulators.

eflow’s latest report considers the granular detail of enforcement action taken by European regulators in recent years and explores the trends that firms need to be aware of. It then overlays this historical data with the opinions of hundreds of compliance professionals from across Europe to offer a detailed prediction of how firms will need to tackle the threat of market abuse in the years ahead.

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What does the report cover?

To better understand this issue, eflow commissioned independent researchers that specialise in financial regulation to undertake analysis of European enforcement action. Here are some of the key points covered by the research:

Quantitative analysis

Analysis of market abuse enforcement by European regulators from 2019-2023

Case studies

Key enforcement case studies showing how European regulators are responding to abusive trading

Europe vs. the world

Analysis of how European regulatory enforcement compares to other jurisdictions

Interviews

Thoughts and insights from surveillance and compliance professionals from Europe and around the globe

RegTech

An examination of how both regulators and regulated firms are investing in surveillance technology

New technologies

Analysis of the role of AI, digital currencies and social media on market abuse

Download the report:

European enforcement overview

During the period under investigation, European regulators issued 42 market abuse fines totalling $213m.
The AMF was Europe’s most prolific regulator in terms of the amount of enforcement action taken, with its 23 penalties being more than double the number issued by the FCA (10) and BaFIN (9).
The FCA issued the harshest financial penalties at an average value of $8.7m, significantly higher than the AMF ($4.8m), the Dutch Authority for the Financial Markets ($2.2m) and BaFIN ($1.7m).
68% of fines issued by the European regulators were for non-compliant activity defined as market manipulation. This figure was significantly higher than the combined efforts of US regulators (46%) and regulatory bodies in the APAC region (11%).

We’re offering a free, no-obligation Market Abuse Health Check

Are you confident in your firm’s trade surveillance strategy to combat the threat of market abuse?

As part of our Market Abuse Health Check campaign, Jonathan Dixon - eflow’s Head of Surveillance - will review the details you submit and deliver a clear, unbiased evaluation of your current trade surveillance strategy. Drawing on his extensive industry experience and subject matter expertise, Jonathan will provide expert insights and recommend actionable improvements to strengthen your firm’s trade surveillance processes.

Book your market abuse health check