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. From Q1 2019 to 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 topics are covered?
Quantitative analysis
Case studies
US vs. the world
Interviews
RegTech
New technologies
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
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.
