Tradovate has deployed the Eventus Validus platform for trade surveillance as the online brokerage firm for active, self-directed futures traders boosts its compliance efforts.
Eventus provides multi-asset class trade surveillance and market risk solutions for brokerage firms. Its surveillance product, Validus, will be monitoring more than 2.5 million orders per month from Tradovate.
The futures broker selected Eventus’ Validus to identify patterns or dangerous activity within the order flow, as well as to meet certain operational requirements, such as monitoring and ensuring the proper use of regulatory tags.
The solution employs a multi-step approach to alert classification by first casting a wide net to ensure that all potential or near-miss alerts are considered.
Then, with machine learning and robotic process automation, the system goes deeper into each alert and identifies market behavior that could lead to regulatory or reputational consequences.
The platform is user-fiendly, with visualizations and flexibility allowing front-office supervisors to quickly and efficiently detect problematic behavior.
Rick Tomsic, Founder and Chief Executive Officer of Tradovate, said: “We love the Validus platform. It’s been a great tool for us to help our trade desk identify and drill down into any potential trade irregularities.
“The combination of pre-built surveillance procedures, with reports and protocols we can customize based on our needs and client base, is extremely powerful. Validus gives us the ability to dive deeply into any suspicious or unusual order flow activity at a very granular, detailed level, giving us comfort both from a trade desk and compliance standpoint.”
Travis Schwab, Chief Executive Officer at Eventus Systems, said: “Firms like Tradovate with extensive retail activity appreciate the ability to rapidly follow up and explore any unusual order flow patterns. This is a great example of how our platform can be used not only by compliance and regulatory teams but by front-office supervisors. We commend the firm for going above and beyond what’s required in order to stay ahead of any potential issues and leverage the many capabilities Validus has to offer.”
Terry Nelligan, Trade Desk Manager at Tradovate, commented: “Eventus does a great job of offering views that make it easy to visualize the market with respect to customer orders. We’re able to find suspicious patterns within a single client account or those that may emerge between multiple clients. Validus makes it simple, easy, and intuitive, providing a visual representation of activity for the period when an alert is triggered that goes beyond what we would be able to monitor on our own. Eventus does a great job of understanding our goals and then helping us customize the platform to implement that.”
Eventus provides trade surveillance and market risk solutions across equities, options, futures, foreign exchange (FX), fixed income, and digital asset markets.
Its market surveillance product caters to tier-1 banks, broker-dealers, futures commission merchants (FCMs), proprietary trading groups, market centers, buy-side institutions, energy and commodity trading firms, and regulators.