Tanzania Mercantile Exchange (TMX) believes that fairness of commodity trading and adequate protection for its participants (buyers and sellers) members is essential for a quality market and prerequisite for price discovery. The main activities of Tanzania Mercantile Exchange (TMX) market surveillance operations are to preserve the integrity of price discovery process by monitoring the market to detect and deter the following:
- Market manipulation practices- an act by a market participant or a group to deceive in prices or volume of a commodity.
- Insider trading – commodity trading made by TMX employee, Board member or affliate based on insider information.
- Misstatement – Rumors or false information to mislead the public in making a commodity trading decision.
- Tanzania Mercantile Exchange (TMX) shall employ the use of software models for generating real time price, volume, alerts for each trading member’s unusual trade activities. The software will have a capability to link transaction prices and trades volumes in each commodity traded in real time, and in the past and if there is unusual changes in trading pattern will alert the market surveillance team.
- Market surveillance team will investigate all unusual trading pattern and pass on evidence in a report to the Tanzania Mercantile Exchange (TMX) Compliance team for further action if there was suffcient evidence that the exchange’s rules have been breached.