About us

INTRODUCTION

The Master Directions “Reserve Bank of India (Electronic Trading Platforms) Directions” requires that an ETP operator shall implement systems and controls to ensure fair and orderly trading to maintain market integrity and monitor trading activity on a real time and post facto basis. In adherence to these guidelines, Clearcorp Dealing Systems (India) Limited (Clearcorp) which operates six electronic trading platforms (ETPs) viz NDS-OM, CROMS, NDS-CALL, TREPS, ASTROID and FX-CLEAR, has in place a Multi-Market Surveillance System. The Clearcorp-Market Surveillance system facilitates surveillance for these trading systems in the different markets including, government securities, money markets, forex and derivatives, and detects any unusual incidence or pattern in the trades which are out of sync of the regular market activity.

OBJECTIVE

The main objective of the Surveillance Function is to detect potential abnormal activity and identify instances of collusion, concentration, and other suspicious behaviour within markets or across various markets.

FRAMEWORK

Alert Monitoring
Alerts are the primary metric in the Clearcorp-Market Surveillance System to identify incidents of unusual activity on the trading platforms. Alerts are grouped into various categories to capture specific trends in the markets. Continuous disclosure alerts identify unusual price movements or sudden change in trading volumes, potentially signalling an unfair advantage for certain market participants. Participant behaviour alerts capture activities such as wash sales, spoofing and front-running, among others. Market control alerts monitor the integrity of market prices and maintain an order in markets. Pattern alerts utilize a mechanism to group individual alerts within a portfolio, facilitating the identification of alert patterns over time.

Reporting
Regular updates on surveillance operations are provided to the management and regulator through various reports. The Reports focus on summarizing trading activity across ETPs, information of members involved in trades that triggered alerts, and outlining instances of abnormal market activity among instruments.