Market surveillance is an important aspect of financial regulation. The spelling of this term can be explained using IPA phonetic transcription as /ˈmɑrkɪt sərˈveɪləns/. The stressed syllables are marked with an apostrophe, and the phonetic symbols represent the sounds of each letter in the word. The word "market" is pronounced with two syllables and the vowel sound of "a" is pronounced with an open mouth. "Surveillance" is pronounced with three syllables and the "ai" diphthong is pronounced as "ay."
Market surveillance refers to the systematic and continuous monitoring and supervision of financial markets, trading activities, and participants to maintain fairness, integrity, and efficiency. It involves the oversight and regulation of market activities to detect and prevent any form of misconduct, manipulation, or illegal activities that may harm investors or undermine the functioning of the market.
This monitoring process involves collecting and analyzing vast amounts of data, including trading volumes, prices, and other relevant market information, to identify potential irregularities or breaches of market rules. Market surveillance aims to ensure compliance with laws, regulations, and market rules while promoting transparency and confidence among market participants.
Regulators and authorities responsible for market surveillance use various tools and techniques to monitor trading activities, including automated surveillance systems, data analysis algorithms, and information sharing networks. These tools help detect suspicious activities, such as insider trading, market manipulation, front-running, or any other forms of unauthorized trading.
The ultimate goal of market surveillance is to maintain an orderly and efficient market environment that facilitates fair competition, protects investors, and safeguards market integrity. By actively supervising market activities, regulators can ensure the market operates in a transparent and ethical manner, detect and deter potential misconduct, and take necessary enforcement actions to maintain the stability and confidence in the financial system.
The term "market surveillance" is derived from the combination of two words: "market" and "surveillance".
1. Market:
The word "market" has its roots in the Latin word "mercatus", which means "a buying and selling". It later evolved into the Old English word "mearc" or "mearce", referring to a boundary or a border. In the middle ages, a "market" designated a specific area or town square where people would gather to buy and sell goods, becoming a hub of economic activity.
2. Surveillance:
The word "surveillance" comes from the French word "surveiller", which means "to watch over" or "to keep under observation". It is a combination of the prefix "sur-", meaning "over" or "above", and the verb "veiller", meaning "to watch" or "to guard".