Nasdaq's Smarts Platform To Power Nigerian Stock Exchange's Compliance Efforts

The Smarts solution will provide NSE with the surveillance capabilities it requires to grow and expand the market, while equipping the exchange with the surveillance tools necessary to monitor for market manipulation, including spoofing and layering.

Smarts allows compliance teams to get to know what traders are doing and how they work. By setting parameters and changing various thresholds, day-to-day trading patterns start to take shape. When the shape of a particular day changes, an alert is triggered.

According to Tinuade Awe, general counsel and head of regulation at the NSE, regulatory and compliance issues continue to be a primary focus in the quest to become Africa's foremost securities exchange. "This development affirms our continuous commitment to protecting investors by creating a fair and orderly market," says Awe.

Waters spoke to Paul Cottee, FX product manager of Nasdaq's Smarts Trade Surveillance unit, about buy-side firms' attitudes to surveillance technology for a feature in November.