HKEX Deploys Nasdaq SMARTS Machine Learning Technology for Market Surveillance
April 16 2018 - 1:01AM
Nasdaq Inc. (Nasdaq:NDAQ) has announced that Hong Kong Exchanges
and Clearing Limited (HKEX) is the first exchange customer in
Asia to successfully deploy Nasdaq SMARTS Market Surveillance’s
latest machine learning and participant relationship discovery
technology across its equity market, enhancing its capabilities to
safeguard market integrity, and better protect investors.
Nasdaq has worked closely with HKEX’s Market Surveillance team
in implementing machine learning to analyze unusual trading
activities and their subsequent categorization by surveillance
analysts. The aim of these algorithms is to predict which actions
analysts are likely to take based upon their handling of historical
activity as well as discovering new relationships within the data.
With new machine learning capabilities, the surveillance functions
of HKEX will be strengthened by increased efficiency by focusing on
unusual trading activity.
“As a market operator, we have always strived to be at the
forefront of embracing and applying emerging technologies that will
strengthen the integrity of our markets,” said Garbo Cheung,
Managing Director and Head of Market Surveillance and Monitoring,
HKEX. “We look forward to continuing our collaboration with the
SMARTS team in further building our machine learning capabilities
in our market surveillance endeavours.”
“HKEX has been instrumental in contributing to this
collaboration and embracing emerging technology to protect market
participants,” said Valerie Bannert-Thurner, Senior Vice President
and Head of Risk & Surveillance Solutions, Nasdaq. “The
evolution of SMARTS is heavily driven through client collaboration
and our mutual interest in improving and maintaining market
integrity, and we look forward to supporting their continual
innovative approach to market surveillance.”
The machine learning capabilities will initially be used to
prioritize the surveillance workflow. The technology predicts the
likelihood that the event will lead to an action by an analyst.
This will particularly help in situations where work load is high,
such as during the opening and closing of the markets. The new
prioritization ranking is then used to complement traditional
quality controls in relation to alert handling, which then enables
surveillance officers to identify outliers where the actual
handling of alerts has differed from the prediction of the
algorithm.
Further, SMARTS has also supplied enhanced trade relationship
visualization to complement a suite of market abuse alerts
targeting group activity. The new visualizations enhance the
efficiency of HKEX to immediately review how participants
coordinate trades through multiple accounts for all historical
market activity.
About NasdaqNasdaq (Nasdaq:NDAQ) is a leading
global provider of trading, clearing, exchange technology, listing,
information and public company services. Through its diverse
portfolio of solutions, Nasdaq enables customers to plan, optimize
and execute their business vision with confidence, using proven
technologies that provide transparency and insight for navigating
today's global capital markets. As the creator of the world's first
electronic stock market, its technology powers more than 90
marketplaces in 50 countries, and 1 in 10 of the world's securities
transactions. Nasdaq is home to approximately 3,900 total listings
with a market value of approximately $12 trillion. To learn more,
visit: http://business.nasdaq.com
For Media Inquiries:
NasdaqRyan Wellsryan.wells@nasdaq.comDirect:
+44 (0) 20 3753 2231Mobile: +44 (0) 7809 596 390
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