product description

Application complying to regulation 2003/6/CE for notification on "suspicious" transactions with regards to Market Abuse (insider trading, intents of manipulation of Market price's levels).

Pegasus Market Abuse offers information tools, based on preset parameters, of assistance in transactions evaluation;  the identification of the single suspicious transaction, and its correct evaluation in the context of an illicit "strategy" (of manipulation or of insider trading) is however left to the organizational autonomy of the intermediaries

parameters definition for the analysis of suspicious transactions

Suspicious transactions identification is performed with the help of a series of parametric indicators.

The control grids provided for are:

• "Sensitive" securities list (edited by the intermediary and based on his own evaluations or on "rumors" present on financial markets) 

• List of financial markets to be analized

• Grid of identification for securities with strong fluctuations on price or volume (% of variance between daily maximum and minimum price, strong fluctuation between opening and closing price, intermediated volume, strong price fluctuations within a set period of time, etc.)

• Types of clients to be analized (administrated, managed and institutional clients, properties, etc.)

• Based on client types, it's possible to specify a grid of control that filters items to be analized (assets limits, transactions countervalue, atypical transactions, concentration of single financial instruments on client's portfolio,  executed orders versus passed orders on a specific financial instrument, number of orders, intermediated volumes within a set time period)

The grids of control are stored over  time since, upon request from agencies of control, the analysis criteria utilized in a given period have to be documented. 

specific data base

Analysis procedures are supported by a specific data base in which grids of control, hystorical series of financial instruments, portfolios assets, synthesis indicators associated to single financial instruments , number of movements, rotation index, intermediate volumes, frequency of operations, ratio between orders passed and order executed , are stored. 

Criteria and "depth" used to store these informations can be parametrically defined.

first level controls

Analysis are performed on a daily basis and in accordance to the investment service provided.

Particularly,  following categories are identified:

• Negotiatiom on third parties' account

• Negotiation on own account

• Asset Management

Procedures of suspicious transactions' analysis are clearly subdivided into two different areas:

• Abuse of privileged informations (insider trading)

• Manipulative intents on market's quotations

First level controls use a series of analysis functions (video and reporting) which allows the operator to evaluate the "suspicious" transactions automatically pulled by the system.

All details relating to "objective" indicators  that led the system to report a specific transaction, are also provided.

Hystorical informations are kept so that over time, it will be possible to  "objectively" document all criteria used in suspicious transactions retrieval.

The operator can utilize a set of graphic analysis intruments that allow a quicker evaluation of the situation of "contour" on a certain suspicious transaction.

Once evaluated, it will be up to the operator to eventually  recommend second level controls on suspicious operations.

second level controls

The manager in charge of second level controls can make use of the same details available on the first level control, can view the reports of the operator who performed first level controls and can assess the reasons that led the operation to second level controls.

The manager, at this point, can enter his own comments regarding each single suspicious operation and decide whether or not to proceed with its notification to the department of competence.

suspicious transactions notification

This procedure will transmit notifications of suspicious transactions to the board of competence  simultaneously creating hystorical records of alll detailed informations on reported operations.