in financial markets
Investor confidence in the markets and all of its participants, Exchanges, trading venues, broker dealers and regulators, is critical to our capital markets and the growth of businesses. Scila’s mission is to support investor confidence by providing tools to all market participants to quickly and effectively identify market abuse or operational errors.
The company Scila was founded early 2008. All of the founders have a background either from surveillance departments or working with high-throughput transactional technology within the financial industry. Throughout the rapid growth of the Scila company a strong focus have been maintained on the recruitment of top-talent.
This solid base of superior domain and technology knowledge have been combined with a strategy of independence from any market participant and no reliance on external capital. This very much deliberate strategy gave Scila both the focus and freedom to develop an innovative product that delivers true value to the customer.
Scila embraces the customer not only as the ultimate arbitrator of what is an excellent surveillance product but also recognizes feedback and discussions with the customers as the valuable commodity it is. Scila considers the deployment of Scila Surveillance at a new customer not an end in itself but a the starting point of a long partnership where the delivery of excellent support is just as important as the product itself.
Scila and Scila Surveillance installations around the world constitute an important part of the overall structure at regulators, exchanges and firms that upholds market integrity, build confidence in markets and ultimately protects end investors.
Exchanges and Trading Venues
Confidence is fundamental for an exchange, and Scila Surveillance is used by some of the leading exchanges and trading venues around the globe. Users include New York Stock Exchange and Deutsche Börse (Eurex and Xetra) among others.
Scila Surveillance is a high throughput real time system which can process millions of transactions per second. Clients can choose from a selection of 100+ alert rules and reports which can be customized.
Market Participants and Brokers
With new legislation and regulatory framework such as Market Abuse Regulation (MAR), REMIT and MIFID 2 there is an increased pressure on market participants (such as banks, trading firms and investment firms) and brokers when it concerns market surveillance.
Scila Surveillance is a real time market surveillance system used by market participants and brokers trading a wide range of asset classes globally. A wide selection of industry standard alert rules and standard protocols for connectivity ensures a smooth implementation.
Regulatory Authorities in both financial and energy markets can use Scila Surveillance to monitor and prevent abuse by consolidating multiple platforms and exchanges to get a consolidated view of all transactions which fall under their jurisdiction.
The system is an industry standard solution used by both exchanges as well as market participants. Output in the form of alerts, graphical analysis and transaction data can easily be exported into presentable evidence
Asset Class Focus
Equities and Derivatives Trading
Scila Surveillance includes Equities and Derivatives markets specific functionality such as the ability to overlay and consolidate fragmented markets (e.g. instruments traded on multiple exchanges / MTFs), use news feeds and e-communication data to detect Insider Trading and Front-Running, visualize Options series and Derivatives versus underlying Instruments and a wide range of specialised Derivatives alert rules.
Energy and Commodities Trading
Scila Surveillance includes Energy and Commodities markets specific functionality such as position monitoring, cross-market/product alert rules, merit order curve replay and standardised trade reporting. The system is designed to monitor trading of energy products in accordance with both Market Abuse Regulation (MAR) and the Regulation on Energy Market Integrity and Transparency (REMIT). Energy and Commodities trading clients include regulators, brokers and exchanges.
Fixed Income Trading
Scila Surveillance includes Fixed Income specific functionality such as Request for Quote (RFQ) and specialised auction support, theoretical pricing (used in both alert rules and overlays) and the ability to use historical reference and market data as benchmark for illiquid instruments. Fixed Income trading clients include exchanges and some of the largest Inter-Dealer Brokers globally.
Foreign Exchange Trading
Scila Surveillance includes Foreign Exchange specific functionality such as Request for Quote (RFQ), Streaming quotes, monitoring, abuse of last look, Front-Running, heat map and relation trading graph. The system fully supports Spot, Futures, Options and combinations (e.g. strategies) and can process millions of transactions per second in real time. Foreign Exchange trading clients include exchanges, large dealer platforms and brokers.
Scila Surveillance is a turnkey market surveillance solution for exchanges, trading participants and regulators that seeks to apply modern technology to obtain a seamless route from early detection of market abuse to presentable evidence. The solution covers all asset classes and market models and has been deployed for over 50 clients in 17 countries since 2008.
To meet the demands from the modern trading environment and changing regulatory landscape, Scila Surveillance not only monitors for traditional market abuse scenarios such as Spoofing, Layering and Insider Trading, but also for high frequency trading, pattern recognition (based on a wide range of trading statistics) and best execution compliance.
Scila Surveillance delivers shorter time-to-market, lower total cost-of-ownership and improved user experience. The result is a flexible and highly efficient solution with standardized connectivity protocols, capable of handling billions of transactions every day. The system can be deployed both on-premise or as a hosted option, including full application management. Scila delivers a technology that has proven to be extremely successful for some of the most demanding financial markets clients in the world.
In production asset class coverage include:
• Equity Derivatives
• Exchange Traded Products
• Energy and Emissions
• Fixed Income
• Money Markets
• Foreign Exchange
In production market model coverage include:
• Continuous Trading / On Exchange
• Over the Counter (OTC) / Off Exchange
• Voice Trading
• Request for Quote (RFQ)
• Auctions (including Open/Close, Fixings, Auxiliary Matching)
• Hybrid models based on combinations of the above
New York Stock Exchange
New York Stock Exchange (NYSE), the world’s largest and most iconic exchange, is using Scila technology for real-time surveillance of all trading activity. NYSE has used Scila surveillance technology since 2014.
• Real-time market surveillance of Equities, Bonds, Options and Equity linked products (ETFs, ETNs etc)
• Scila Surveillance process up to 50 billion messages daily
• Scila Surveillance monitors Reg NMS and trade through compliance
Deutsche Börse Group
Deutsche Börse Group, one of Europe’s largest exchange groups and global leader in derivatives trading, is using Scila technology for real-time surveillance of all trading activity conducted on Eurex, Xetra and 360T. Deutsche Börse Group has used Scila surveillance technology since 2010.
• Real-time market surveillance of Xetra (Equities), Eurex (Derivatives) and 360T (Foreign Exchange)
• Scila Surveillance process up to 5 billion messages daily