Change search
ReferencesLink to record
Permanent link

Direct link
Conceptual dynamics on the trade surveillance market: A study of changes in the Swedish trade surveillance market in conjunction with MiFID2/MiFIR and MAD2/MAR
KTH, School of Industrial Engineering and Management (ITM), Industrial Economics and Management (Dept.), Industrial marketing.
KTH, School of Industrial Engineering and Management (ITM), Industrial Economics and Management (Dept.), Industrial marketing.
2016 (English)Independent thesis Advanced level (degree of Master (Two Years)), 20 credits / 30 HE creditsStudent thesisAlternative title
Ett koncept för dynamik på marknaden för handelsövervakningssystem : En studie av förändringar på den svenska marknaden för handelsövervakning i samband med MiFID2/MiFIR och MAD2/MAR (Swedish)
Abstract [en]

Financial markets have been subjected to numerous regulations during the last two decades. MiFID2/MiFIR and MAD2/MAR are two extensive regulations that will apply on European level during 2016 - 2018. Both these regulations stress areas that are of relevance to trade surveillance. Trade surveillance systems are IT systems applied to the market for financial instruments to identify market abuse or other harmful patterns in participants’ trading activity. The purpose of this report is to map the market of trade surveillance technology in Stockholm, Sweden, and examine the impact on these actors in conjunction with the regulations. Since MiFID2/MiFIR and MAD2/MAR are extensive regulations, these were condensed to key points that were considered as relevant for surveillance.


This research is a qualitative study and data was gathered by interviews with market actors. A pre-study and a literature study were made. These were used as basis to construct an analytical framework for market dynamics, which was used as a descriptive concept to design interview questions, structure data and analyze results. The framework was named Market Dynamics Framework and considered the macro-environmental factors: Technology, Actors’ preferences, Market structure and Regulations.


The market was segmented in order to more accurately examine regulatory impact. Market actors were divided into four groups. The results were analyzed according to the framework and for each of the segmented market actor groups. Preference of surveillance solution was shown to be one distinct difference between every segment. A purchased surveillance system from a vendor was most common, and actors of smaller scale preferred to outsource.


The market is concluded to be prepared in terms of having systems and arrangement for monitoring trades in place. Expected impact is mostly related to new market structures and more detailed data of larger amounts. Increased capacity need for surveillance departments is expected in combination with a need for more advanced technologies; e.g. automatic screening of social media, efficient minimization of false positives, functionality coverage for a broader range of financial instruments.


This research introduces two concepts as descriptive frames, Market Dynamics Framework and a segmentation. These are proposed as methods when conducting a market analysis. A validation study for these methods is suggested as a possible topic for future studies.

Place, publisher, year, edition, pages
Keyword [en]
Financial market, trade surveillance, MiFID2, MiFIR, MAD2, MAR, market dynamics, segmentation
National Category
Business Administration
URN: urn:nbn:se:kth:diva-189636OAI: diva2:947484
Available from: 2016-07-11 Created: 2016-07-08 Last updated: 2016-07-11Bibliographically approved

Open Access in DiVA

fulltext(1680 kB)57 downloads
File information
File name FULLTEXT01.pdfFile size 1680 kBChecksum SHA-512
Type fulltextMimetype application/pdf

By organisation
Industrial marketing
Business Administration

Search outside of DiVA

GoogleGoogle Scholar
Total: 57 downloads
The number of downloads is the sum of all downloads of full texts. It may include eg previous versions that are now no longer available

Total: 20 hits
ReferencesLink to record
Permanent link

Direct link