Measuring and monitoring rogue trading in financial institutions. A practical guide to develop rogue trading indicators

      Аннотация: On any given day, it is possible for traders to operate outside of the established norms of a bank or financial institution. The vast majority do not get caught. In fact, many are profitable as a result of their unauthorized trading activities (commonly referred to as “rogue trading”), but they have nonetheless not followed the norms and put their institution at risk by their actions. A few begin to lose money, are caught and dismissed quietly. A much smaller group loses large amounts of money before they are caught. These are the ones that make the headlines. This book starts by unraveling the phenomenon rogue trading by applying Schneider’s (2007) Leipzig process model for white-collar criminal activity in a new context. Based on recent research as well as the reports of Swiss Financial Market Supervisory Authority (2012), PricewaterhouseCoopers (2008) and Bank of England (1995), it then develops step by step rogue trading indicators by means of examples, intended to be used to measure and monitor rogue-trading in financial institutions.

Ключевые слова: Financial Crime, Risk Management, Rogue Trading, Key Risk Indicators, Insider Fraud