Nasdaq’s SMARTS, in
collaboration with Nasdaq Nordic, has deployed machine learning
capabilities which analyze abnormal market events and improves the
alerting processes surrounding market abuse detection
STOCKHOLM, Sweden, Sept 7 (Bernama-GLOBE NEWSWIRE) -- Nasdaq, Inc. (Nasdaq:NDAQ)
has announced it has successfully deployed machine learning technology
across its entire Nasdaq Nordic markets—Stockholm, Copenhagen, Helsinki,
Iceland—– to bolster its market surveillance efforts.
Nasdaq’s
SMARTS, in collaboration with the Nasdaq Nordic Market Surveillance
team, has implemented machine learning within its surveillance
technology to analyze abnormal market events and their subsequent
categorization by surveillance analysts across the Nordic markets. The
aim of these algorithms is to predict which actions analysts are likely
to take based upon their handling of historical activity as well as
discover new relationships within the data—thereby strengthening Nasdaq
Nordic’s surveillance mechanism to detect market abuse. The next stage
will be to integrate machine learning technology into the SMARTS
offering for exchange and regulator clients worldwide.
“This
project marks an important milestone in the use of machine learning in
the capital markets,” said Tony Sio, Head of Exchange & Regulator
Surveillance, Market Technology, Nasdaq. “By closely collaborating with
the Nasdaq Nordic surveillance team, we have been able to build unique
algorithms that have improved the efficiency and effectiveness of
monitoring our own markets. At the same time we are progressing on a
broader machine learning strategy and exploring other applications of
this technology to strengthen the surveillance process for markets
worldwide.”
The machine learning capabilities will initially be
used to prioritize the surveillance workflow. The technology predicts
the likelihood that the event will lead to an action by an analyst. This
will particularly help in situations where work load is high, such as
during the opening and closing of the markets. The new prioritization
ranking is then used to complement traditional quality controls in
relation to alert handling, which then enables surveillance officers to
identify outliers where the actual handling of alerts has differed from
the prediction of the algorithm. Lastly, the existing alert designs will
be evaluated based upon new relationships or rules revealed by the
machine learning technology and redesigned and improved accordingly.
“This
will be one of the earliest applications of machine learning leveraged
as an integral part of the surveillance process within the exchange
surveillance space,” said Joakim Strid, Head of European Surveillance,
Nasdaq. “As a market operator, we have always strived to be at the
forefront of embracing and applying emerging technologies that will
strengthen the integrity of our markets. We look forward to continuing
our collaboration with the SMARTS team in further building our machine
learning capabilities in our market surveillance endeavours.”
As
the industry benchmark for real-time and T+1 cross-market surveillance
platforms, Nasdaq’s SMARTS surveillance technology automates the
detection, investigation and analysis of potentially abusive or
disorderly trading, to help improve the overall efficiency of the
surveillance organization and reduce cost, even as market complexity and
new regulations increase. These solutions are used to power monitoring
for more than 45 marketplaces, 17 regulators and 140+ market
participants, including several buy-side institutions, across 65
countries.
About Nasdaq:
Nasdaq
(Nasdaq:NDAQ) is a leading global provider of trading, clearing,
exchange technology, listing, information and public company services.
Through its diverse portfolio of solutions, Nasdaq enables customers to
plan, optimize and execute their business vision with confidence, using
proven technologies that provide transparency and insight for navigating
today's global capital markets. As the creator of the world's first
electronic stock market, its technology powers more than 90 marketplaces
in 50 countries, and 1 in 10 of the world's securities transactions.
Nasdaq is home to approximately 3,900 total listings with a market value
of approximately $12 trillion. To learn more, visit: http://business.nasdaq.com
NDAQG
Contact:
Ryan Wells (International Media)
ryan.wells@nasdaq.com
Mobile: +44 (0) 7809 596 390
David Augustsson (Swedish Media)
David.Augustsson@nasdaq.com
Mobile +46 73 449 61 35
SOURCE : NASDAQ, Inc.
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