US trends in market abuse and trade surveillance

Published April 2024

US regulators consistently rank first for both the volume and severity of their enforcement action. Between Q1 2019 and Q3 2023, they issued 133 fines totalling $2.67bn compared to 72 fines equalling $251m for all other regulators across the globe.

Naturally, the stark contrast between these statistics raises a key question - why are US regulators taking so much more enforcement action against the perpetrators of market abuse when compared to other jurisdictions? This report explores the nuanced explanations that sit behind the main headline.

What does the report cover?

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

Quantitative analysis

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

Case studies

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

US vs. the world

Analysis of how US regulatory enforcement compares to other jurisdictions

Interviews

Thoughts and insights from surveillance and compliance professionals from the US 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:

US enforcement overview

During the period under investigation, US regulators issued 133 market abuse fines totalling $2.7bn
The US is the only jurisdiction to consistently issue fines for short selling-related violations, with FINRA and the SEC issuing $42.5m worth of penalties across 20 individual fines
The highest individual penalty was issued to JP Morgan Chase and Co for $920m
Even discounting this large penalty, the average fine issued by US regulators equalled $13.2m.
In particular, the CFTC issued the highest average fine value with an average fine amount of $57m

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

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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.

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