Star Compliance announced today that it has added international news feeds into the Insider Trading module of its compliance software solution. The international feeds, together with the existing domestic news feeds, provide access to global market information necessary to detect suspicious trading activity that could indicate insider trading.
The Star Compliance Insider Trading application helps compliance teams identify trades that may have been based on "material non-public information" (MPNI) by flagging employee and firm trading activity that correlates with price and volume movement and market-changing news. The Insider Trading module automatically pulls market-moving news from leading publishing and influential social media sources and then filters and indexes the news items relevant to trading activity. The software then compares the news items with real-time security pricing and volume data to track employee and firm trading patterns against any market-changing news to highlight potential insider trading activity. The module indicates trades that occurred prior to a significant market event, such as a significant rise or fall in a security price. Star Compliance's extension of its partnership with an international news aggregator now covers clients in their global trading markets.
"The SEC, FCA and other regulators have made catching insider trading a top priority. In the past three years alone, the SEC has brought over 165 insider trading actions; we expect this trend to continue," said Matt McGill, Vice President Sales at Star Compliance. "As global regulators continue to turn up the heat on individuals and firms, we continue to update our application to ensure our clients have the most transparent and aggressive compliance procedures in place to detect and prevent insider trading."
Star Compliance added Insider Trading to its compliance software solution in 2012. The module enables compliance officers to identify, retain and track all suspicious trading activities by allowing them to keep a full audit trail that compares trades to market data and news events reported around the world. Users can custom design the system to meet changing compliance requirements for different operating groups within an organization.