BST Awards 2018: Best Buy-Side Market Surveillance Tool/Platform—Nasdaq
When it comes to surveillance, the king of the hill on the sell side has, for many years, been Nasdaq. Of late, the US exchange operator has made significant efforts to extend its Smarts platform to the buy side, and this year it returns to the Buy-Side Technology Awards winners’ circle thanks to its Buy-side Compliance (NBSC) offering.
While Smarts is a world-class platform in its own right, what has really set Nasdaq apart in recent months has been its incorporation of behavioral models. The roots of NBSC are actually in Compass, the platform formerly offered by London-headquartered artificial intelligence and behavioral science specialists Sybenetix, which Nasdaq acquired in September 2017.
Just over a year since that acquisition, the integration efforts are bearing fruit. NBSC isn’t just a standard surveillance platform that checks whether trading patterns of portfolio managers fit the typical definition of layering, spoofing or other forms of market abuse, it also drills down into the individual traits of the trader, identifying when behavior is outside of the norm, and applies advanced analytics to detect the true nature of intent in trading.
All of this couldn’t come at a more opportune time for buy-side firms. Having long been largely left alone by regulators, rules including the revised Markets in Financial Instruments Directive (Mifid II) and the Market Abuse Regulation among others, along with enhanced conduct monitoring from government institutions, are placing more scrutiny on asset managers and hedge funds than ever before. Therefore, simply having a process that ticks a box and attests that, yes, this firm tries not to engage in spoofing, layering or wash trades simply doesn’t, well, wash. But not anymore. With NBSC, Nasdaq is taking surveillance to the next level.
“We focus on solving problems using new technology instead of the other way,” says Valerie Bannert-Thurner, head of risk and surveillance solutions, in Nasdaq’s Market Technology business. “But obviously adoption of some of these new capabilities is something we are pushing rapidly from an innovation perspective.”
These capabilities are already resulting in the production of suspicious activity reports, Bannert-Thurner says, and are reducing false positives by providing a more “holistic” view of surveillance that doesn’t simply rely on pre-programmed alerts. Instead, the AI—for which Nasdaq also won a category in this year’s Buy-Side Technology Awards—is paying dividends and putting sophisticated monitoring technology in the hands of buy-side professionals, often for the first time.
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 print this content. Please contact info@waterstechnology.com to find out more.
You are currently unable to copy this content. Please contact info@waterstechnology.com to find out more.
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Printing this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
Copyright Infopro Digital Limited. All rights reserved.
You may share this content using our article tools. Copying this content is for the sole use of the Authorised User (named subscriber), as outlined in our terms and conditions - https://www.infopro-insight.com/terms-conditions/insight-subscriptions/
If you would like to purchase additional rights please email info@waterstechnology.com
More on Awards & Rankings
Witad Awards 2024: Technology innovator of the year (vendor)—Christy Bremner, SS&C Technologies
Christy Bremner, senior vice president, Institutional & Investment Management (I&IM) division at SS&C Technologies, wins technology innovator of the year (vendor) in the 2024 Women in Technology and Data Awards.
Witad Awards 2024: EDM professional of the year—Neslihan Yegul, S&P Global Market Intelligence
Neslihan Yegul, vice president, head of EDM and thinkFolio at S&P Global Market Intelligence, wins EDM professional of the year in the 2024 Women in Technology and Data Awards.
Witad Awards 2024: Technology innovator of the year (end-user)—Laura Hamilton, Bank of America
Laura Hamilton, global head of corporate treasury, credit risk, climate risk, and financial forecasting technology at Bank of America, wins technology innovator of the year (end-user) in the 2024 Women in Technology and Data Awards.
Witad Awards 2024: Vendor professional of the year (data and operations)—Joanna Davies, OSTTRA
Joanna Davies, head of trade processing at OSTTRA, wins vendor professional of the year (data and operations) in the 2024 Women in Technology and Data Awards.
Sell-Side Technology Awards 2024: Best sell-side front-office platform—Bloomberg
Product: Bloomberg TOMS
Most read
- Chris Edmonds takes the reins at ICE Fixed Income and Data Services
- Nasdaq reshuffles tech divisions post-Adenza
- Deutsche Börse democratizes data with Marketplace offering