Nasdaq has launched its data discovery capability within Nasdaq Trade Surveillance in order to provide deeper insight into trading and surveillance activity and extract additional insights and context for market abuse investigations. The data discovery technology is already operating in multiple firms.
Nasdaq’s 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.
The world’s most widely used surveillance solution for the sell-side industry also provides data scientists with normalized data access to fuel innovation initiatives. Initially focused on delivering value to the Nasdaq’s surveillance community, the technology will be part of other market technology platforms beyond surveillance over time to unveil additional insights when analyzing data across siloes.
Valerie Bannert-Thurner, Senior Vice President and Head of Buy-Side and Sell-Side Solutions, Market Technology at Nasdaq, said: “Data is and always will be the key source for decision making for an organization – how data is unlocked, processed and utilized is crucially important. We believe our new capability opens doors for our trade surveillance clients to tap previously underutilized data to further enhance their operations, advance their surveillance, as well as differentiate and empower their business strategy.”
For many firms, normalization of trade- and compliance-related data across multiple venues is cumbersome, while the process of extracting the right data sets at the right time for the right persona is both time-consuming and resource-intensive.
Its intuitive user interface and powerful API are able to overcome data access hurdles for compliance in a number of trade surveillance cases, including:
Regulatory inquiries – allows access to extensive trading data for rapid response to regulatory or exchange initiated inquiries;
Data reconciliation – allows access to normalized trading data across multiple asset classes and venues for use in data audits and reconciliation for regulatory compliance including MiFID II;
Case reviews – provides new data investigation capabilities to expeditiously identify activity patterns over time and across securities and markets to aid investigation of sophisticated market abuse cases;
Data science access – supports the exploration of targeted data sets, aggregations and behavioral indicators for use in internal data analysis projects by data scientists and innovation teams.
Nasdaq’s surveillance technology is used to power monitoring for more than 59 marketplaces, 19 regulators and 160+ market participants, including several buy-side institutions, across 65 countries.
In June 2019, the Astana International Exchange, Kazakhstan’s stock exchange, deployed Nasdaq’s SMARTS Market Surveillance. The solution 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.
Also last year, Nasdaq partnered with Bcause LLC, creator of the world’s first full-stack cryptocurrency ecosystem, to provide Nasdaq’s matching engine, clearing, and market surveillance technology via the Nasdaq Financial Framework platform. Nasdaq empowers Bcause’s with a surveillance technology designed to ensure that surveillance protocols fit the needs of a crypto marketplace, including the monitoring of manipulative activities, among other misconduct, thereby creating a safer spot and derivatives market for all participants.
