Sell-Side Technology Awards 2023: Best sell-side market surveillance product—Nasdaq

Product: Nasdaq Surveillance Solutions (including Nasdaq Trade Surveillance and Nasdaq Market Surveillance)

Overview

Nasdaq’s Surveillance Solutions is a global provider of cross-market, multi-asset, multi-venue trade surveillance and market risk solutions. Firms today must monitor trading across an ever-expanding number of markets and develop visibility across multiple venues and asset classes. Nasdaq Surveillance provides a solution to harness the value of that fast-growing pool of data with real-time analytics and reporting. The firm’s technology supports its customers to maintain fair markets through preventing market abuse.

“Kiatnakin Phatra Securities is pleased to be partnering with Nasdaq’s Trade Surveillance system. Given Nasdaq’s leading position as a provider of market surveillance systems, the Nasdaq Trade Surveillance technology will allow KKPS to enhance its market surveillance capabilities and keep pace with global surveillance standards. Our partnering with Nasdaq introduces new technologies, approaches, and solutions for our global client base.”
Aphichart Chongsanguanpradab, managing director and head of legal and compliance, KKPS

The solution

  • Technical challenges: Nasdaq sources, captures and maintains all trading and market data for clients
  • Interpretative challenges: Nasdaq translates regulatory guidelines into pre-configured alerts that detect different patterns of market abuse
  • Management challenges: Nasdaq makes analyzing and managing alert and data output easier, allowing clients to demonstrate that alerts are being properly managed for case-building
  • Innovation challenges: New approaches and technologies are applied to surveillance scenarios to drive efficiency in how alerts are escalated

Secret sauce

  • Market data: Direct connectivity to over 200 markets for sourcing of customer and market data. Coverage across all asset classes, including OTC and crypto. Full order book visualization and market replay capabilities
  • More than 300 preconfigured alerts: Nasdaq Surveillance covers market abuse scenarios including spoofing, marking the close/fix, front-running and insider trading
  • Visualization tools: “Spread” provides a whole-of-market view of customers trading against the context of the market, while “depth” visualizes order book depth

Recent enhancements

  • Pinging alert: Monitors where the entity has traded a small volume in a dark pool then traded a much larger volume shortly thereafter
  • Workbench: Improves efficiency and management of alerts via modular interface and configurable analytics
  • Market data quality: Several new market data feeds, including ICE US, increasing the market depth capabilities to 20 levels on both sides of the book
  • Evidence cards: Provides quick visualization of relevant information related to a suspected incident

Future objectives

  • Reduce false positives: Building out of new tools and APIs to support customers in optimizing their alert parameters
  • Nasdaq Surveillance for Crypto: Working with global authorities to enhance Nasdaq’s product to meet new legislations covering digital assets
  • New AI capabilities: Incorporating machine learning capabilities into the system, with a focus on anomaly detection and expanding the data infrastructure to allow easier integration of machine learning
“Having been in the surveillance space for over 30 years, Nasdaq has a rich history of understanding the underlying drivers for market abuse―no matter the type of market or asset class. On top of this, innovation is in our DNA and we continue to leverage the latest technology to ensure our Surveillance solutions are able to deliver the most comprehensive investigative capabilities for our clients, who are the driving force behind our technology.”
Valerie Bannert-Thurner, senior vice president, anti-financial crime, Nasdaq

Why they won

These and other WatersTechnology awards have been a happy hunting ground for Nasdaq over the years, thanks largely to its all-conquering Smarts platform. This year’s win comes courtesy of the firm’s Nasdaq Surveillance Solutions offering, which on closer inspection features much of the DNA that made Smarts so successful. The platform features connectivity to over 200 markets on the data front, while its asset class coverage is truly universal and even includes support for OTC instruments and crypto. Its more than 300 preconfigured alerts cover every conceivable market abuse scenario users could want, making it the most comprehensive market surveillance platform on the market today.

Only users who have a paid subscription or are part of a corporate subscription are able to print or copy content.

To access these options, along with all other subscription benefits, please contact info@waterstechnology.com or view our subscription options here: http://subscriptions.waterstechnology.com/subscribe

You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.

IMD & IRD Awards 2024: All the winners

Here are the 28 category winners of this year's Inside Market Data & Inside Reference Data Awards, announced on the evening of May 16 at a reception following this year's North American Financial Information Summit in New York.

You need to sign in to use this feature. If you don’t have a WatersTechnology account, please register for a trial.

Sign in
You are currently on corporate access.

To use this feature you will need an individual account. If you have one already please sign in.

Sign in.

Alternatively you can request an individual account here