Blog Series: Fighting Market Abuse in the Age of AI: Trends, Threats and Technology
Market abuse is no longer confined to the occasional insider tip or single-market scam – it’s evolving, multiplying and stretching across borders. Technology, especially AI-driven algorithmic trading, is accelerating the speed and sophistication of manipulative schemes.
The explosion of cryptocurrencies has opened new frontiers for abuse, while regulatory blind spots – particularly with regards to off-channel communications surveillance – are giving bad actors room to maneuver.
The stakes couldn’t be higher. Left unchecked, these trends erode market integrity, drain investor confidence and can saddle firms with fines, sanctions and reputational damage.
This blog series unpacks the four biggest trends shaping the future of market abuse – and the strategies firms need to stay ahead.
The first trend relates to rising regulatory scrutiny. Market abuse isn’t slowing down – and neither are regulators. Around the globe, agencies are intensifying their focus on insider trading, manipulation and failures in surveillance, with penalties soaring to historic highs.
- United States: Despite some regulatory rollbacks in areas like cryptocurrency or ESG, the SEC is doubling down on insider trading and fraud. In 2024 alone, it brought more than 500 enforcement cases related to insider trading and market manipulation. North American enforcement penalties hit a record $25.3 billion in 2024, up from $9.2 billion in 2023. Failures in communication monitoring and spoofing schemes were key drivers. Notable fines included $55 million against Trafigura and $48 million against TotalEnergies.
- United Kingdom & Europe: The FCA tripled fines from £53.3 million in 2023 to £176 million in 2024, powered by data analytics and tougher enforcement on senior manager accountability. Across Europe, Italy and Germany are keeping up targeted actions, while the EU pushes through MAR 2.0 and new ESMA guidance on digital communications to close surveillance gaps.
- Asia-Pacific: Regulators in Hong Kong, Australia and South Korea are inspecting the inner workings of surveillance programs, from governance and design to testing and implementation.
Key Takeaway: Surviving this wave of enforcement requires tech-driven, multi-asset, multi-channel surveillance frameworks, partnerships with scalable compliance vendors and a culture where ethics aren’t optional. Complacency isn’t just risky – it’s an open invitation for regulatory action.
In our next blog in the series, we’ll explore Trend #2: The Off-Channel Communications Surge, and why unmonitored messages, emails and social media activity have become a global compliance headache.