The framework combines real-time monitoring, end-of-day analytics, rule-based alerts and AML/CFT surveillance mechanisms to strengthen market integrity and regulatory compliance.
Surveillance Objectives
The market surveillance framework is designed to:
• Preserve orderly market conditions
• Promote fair and transparent trading
• Detect abnormal market activity
• Strengthen participant confidence
• Support regulatory compliance
• Enhance market resilience
Real-Time Market Surveillance
Continuous Monitoring During Market Hours : Trading activity is monitored on a real-time basis throughout market hours to identify unusual activity and enable timely intervention where required.
Real-time surveillance enables monitoring of:
Trading Activity : Continuous observation of order and trade behaviour.
Price Movement Monitoring : Tracking abnormal movement patterns and unusual volatility.
Position and Exposure Monitoring : Monitoring participant-level and contract-level exposure.
Settlement Risk Indicators : Monitoring events that may impact orderly settlement.
Market Behaviour Analysis : Identification of patterns that may require review.
Real-Time Surveillance Objectives
• Early identification of unusual activity
• Timely escalation of surveillance observations
• Reduction of operational and market risks
• Continuous oversight of market functioning
End-of-Day (EOD) Surveillance
Post-Market Analytical Surveillance
In addition to real-time controls, IIBX performs end-of-day surveillance reviews to identify trends, exceptions and potential concerns that may not be observable intraday.
EOD surveillance supports deeper analytical review across:
• Trading activity
• Participant behaviour
• Concentration analysis
• Settlement outcomes
• Position trends
• Cross-day movement analysis
End-of-Day Monitoring Focus Areas
Trade Pattern Review
Concentration Analysis
Price Behaviour Monitoring
Participant Exposure Assessment
Settlement Exception Monitoring
Compliance Reviews
Alert-Based Surveillance Framework
Threshold-Driven Surveillance Mechanism : Market surveillance is supported through a structured alert generation framework.
Alerts are generated automatically using predefined surveillance thresholds and monitoring parameters.
These thresholds are designed to identify exceptions and support proactive review.
Surveillance Alerts May Cover
Price Movement Alerts
Volume-Based Alerts
Order Behaviour Alerts
Position Concentration Alerts
Settlement Alerts
Participant Risk Alerts
Periodic Review of Thresholds
Surveillance thresholds and alert parameters are reviewed periodically to ensure continued effectiveness and alignment with market conditions, product characteristics and operational requirements.
The surveillance framework may evolve over time to reflect:
• Market developments
• Product changes
• Trading behaviour trends
• Regulatory expectations
• Risk observations
AML / CFT Surveillance Framework
IIBX maintains surveillance mechanisms designed to support compliance with applicable Anti-Money Laundering (AML) and Countering Financing of Terrorism (CFT) requirements.
AML/CFT surveillance forms an integral component of the broader market monitoring framework as per regulatory guidelines.
AML/CFT Monitoring Measures
Transaction Monitoring : Monitoring transactions to identify unusual or potentially suspicious patterns.
Behavioural Monitoring : Review of participant activity and transaction characteristics.
Pattern and Scenario-Based Detection : Identification of predefined scenarios and exceptions for further review.
Risk-Based Monitoring : Application of surveillance intensity based on risk considerations.
Alert Generation and Review : Automated generation and review of surveillance alerts.
Escalation Framework
Structured escalation and reporting mechanisms where required.
AML/CFT Surveillance Objectives
• Support financial system integrity
• Strengthen compliance controls
• Promote transparency
• Detect unusual transaction behaviour
• Support regulatory reporting obligations
Surveillance Governance
Market surveillance activities operate within a governance framework supported by defined processes, monitoring protocols and review mechanisms.
The surveillance framework is subject to periodic evaluation to support effectiveness and continuous improvement.
Key Principles
Transparency : Consistent and rule-based monitoring.
Timeliness : Continuous and proactive surveillance.
Adaptability : Periodic review of surveillance parameters.
Compliance : Alignment with applicable regulatory expectations.
Integrity : Supporting fair and orderly markets.