It’s been a busy summer for the Surveyor team. We’ve spent a lot of time on the road meeting with clients and partners, and we’re just getting back from Florida as we start gearing up for a busy fall season. I’m looking forward to connecting with more of our community in person and meeting some new faces along the way.
In many of the conversations I’ve had with clients and others across the industry this summer, market structure continues to remain front and center. From the proposed rescission of Rule 611 to the continued growth of prediction markets and expanded trading hours, firms are evaluating what these changes mean for best execution, trade surveillance, and the broader oversight frameworks they rely on every day.
Spoofing doesn’t depend on Rule 611. Manipulative intent is manipulative intent, regardless of the routing framework around it. But the tools, signals, and reference points that surveillance systems use to detect spoofing are deeply entangled with the market structure that Rule 611 created.
Lisa Balter Saacks, president of Trillium Surveyor, explains how the growth of prediction markets is requiring firms to adapt their surveillance frameworks to new event-driven trading activity.
Prediction markets keep growing; trading hours are expanding; and firms are dealing with a lot more activity across a broader set of products and venues, often without oversight infrastructure to match.
Robert Cope, Director of Markets and Operations Strategy for Trillium Surveyor, explains that rescinding Rule 611 would change the mechanics of routing across fragmented U.S. equity markets, but it would not change firms’ obligation to achieve best execution.
