Trade Forensics

Throughout the world, financial institutions and other corporations of all sizes are increasingly being presented with complex challenges associated with fraudulent and other illegal conduct from within their organizations. Monument Economics Group provides financial, regulatory, and trade forensics consulting solutions to financial institutions and other corporations who face regulatory and compliance challenges as a result of participating in capital markets. These consulting solutions include in-depth review and analysis of clients’ data, technology, processes and procedures, and program management.

MEG’s team of data science investigators and former financial regulators are ready to help clients direct and respond to complex investigations. Our practitioner-led forensics team combines diverse sources of structured and unstructured, quantitative and qualitative data to better understand client matters and identify elements that tend to be ignored by traditional economic analysis of trading conduct.

MEG’s experts’ experience spans the entire regulatory lifecycle—from prevention to investigation to litigation and remediation—across a wide range of enforcement cases involving the CFTC, DOJ, FBI, NFA, FCA, FinCEN, IRS, and SEC. We have successfully identified fraud and abuse, identified trading patterns in support of legal theories, and have evaluated and overseen corporate monitorships of major financial institutions and trading firms. We serve as expert witnesses and are experienced in developing litigation-grade code and analytics.

MEG’s team of experts bring extensive experience in:

  • Criminal and civil government investigations, white-collar defense, and private actions
  • Financial and commodity futures, options, and swaps
  • Algorithmic, high-frequency, and manual trading
  • Market manipulation by commodity producers, trading houses, and end-users
  • Cross-market, cross-exchange, many-legged, and spot / physical market misconduct

Monument Economics Group can support its clients in the following ways:

PREVENTION OF MISCONDUCT, FINES, AND REPUTATIONAL DAMAGE
  • Trade surveillance
    • System design and architecture
    • Calibration, parameter tuning, and validation
    • Statistical sampling methodology selection
    • Balance trade-offs between AI/ML and rule-based systems
    • Validation, testing, and sampling process design
  • Conduct risk-based assessments of trading strategies, data, and organizational practices for potential sources of regulatory interest
LITIGATION OF PRIVATE, CIVIL, AND CRIMINAL MATTERS
  • Serve as expert witnesses, assist in third-party expert witness selection, and source partner expert witnesses
  • Support use of trading and economic evidence in document review and depositions
  • Evaluate expert witness qualifications, project code, and statistical and economic evidence and arguments
  • Evaluate, critique, and provide rebuttals to opposing counsel arguments
  • Conduct valuations and price impact and damage assessments
  • Calculate profit and loss
INVESTIGATION OF POTENTIAL MISCONDUCT INVOLVING MARKET MANIPULATIONS, FRAUD, ABUSE, AND DISRUPTION
  • Manage and conduct internal investigations to identify the scope of any problems and cooperate with regulators, including whistleblower hotline response
  • Data mine qualitative and quantitative, structured and unstructured data sources and integrate with speaking documents, source code, and logs to develop the full context around a trading strategy
  • Advise on economics of trading in crafting investigative testimony strategy and questions
  • Distinguish between trades conducted in accordance with technical, fundamental, and market microstructure factors from those that are manipulative, disruptive, or fraudulent in intent (e.g., spoofing)
  • Model markets to identify corners, squeezes, and other price manipulations from both market data and firm-level transaction records
REMEDIATION OF ISSUES AND DEFICIENCIES INDEPENDENTLY OR UNDER COURT ORDER AND CONSENT AGREEMENTS
  • Develop remediation plans, policies, procedures, and processes
  • Improve surveillance systems to prevent recurrent and future misconduct
  • Conduct and support corporate monitorships
  • Train staff and compliance officers on red flags and preventive measures
  • Conduct periodic risk assessments of trading activity
  • Work with firms to select trade surveillance systems and technology vendors

Meet Our Leadership Team