Bats ramps up surveillance with US policing programme

Bats set to launch a policing programme for equities and options in the US to “enrich” its surveillance capabilities.

Bats Global Markets announced it has created a ‘Bats Community Policing Programme’, a surveillance initiative to improve the firm’s monitoring capabilities.

The programme will be used for US equities and options markets, and it will see Bats “proactively” engage with traders to identify inappropriate behaviour.

It will also share intelligence on misbehaviour in markets through regulatory forums, one-on-one member meetings and a surveillance tips workshop.

Bats said the programme establishes a “walking the beat” process as it engages with the trading community and opens up a dialogue with the industry.

Chief regulatory officer at Bats, Tami Schademann, said the policing programme will “enrich [Bats’] market surveillance program, leading to better surveillance and more investigations of unwanted behaviours in our market.”

The move follows the Securities and Exchange Commission’s (SEC) approval of Bats’ client suspension rule, which allows “swift action” if spoofing or layering occurs.

The policing programme is set to take effect in August this year, and details of any investigations will not be shared to “ensure its integrity”.

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