The Trading Activity Patterns process, available to FUNDLinx clients running version 4.2 or higher, is done through a series of user-defined criteria that sift through the trades in detecting possible illicit trading activity. The results of the analysis are displayed in a set of reports that the intermediary can use to further research the underlying detail level trades.
This comes at a time when allegations have surfaced of potential abuses by hedge fund managers and other trading entities with respect to late trading and market timing, putting financial intermediaries in the line of fire due to the common practice of trade aggregation. This process creates the potential for inadvertent masking of improper trades and places greater responsibility on the intermediary for regulating trading activities.
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