Market Abuse Regulations (MAR) took effect on July 3 2016 across the EU. In order to align with these new set of rules, financial institutions operating in financial markets (Equities, FX, etc.) are obliged to surveil their own activities to identify market abuse.
Firms and operators of a trading venue must identify and reduce the risk of market abuse, and report it. A suspicious transaction or order is one where there are ‘reasonable grounds’ to suspect it might constitute market abuse, such as insider dealing or market manipulation.
The eyeDES® Surveillance solution operates Live or in Batch mode and it is based on our unique Artificial Intelligence technology. First a Feature Machine enriches your data and creates a new data space.
Then the new data is injected into an Anomaly Detection Engine which detects any suspicious behaviour. The Intelligent Assistant Tool is connected and ready to assist your Compliance team in reviewing the cases.
The Feature Machine constructs a New Data Space by enriching on the fly your execution and market data with additional signals called Features. The Features describe several activities of the Market Participants and measure them in a unique way.
The Anomaly Detection Engine takes the New Data Space constructed by the Feature Machine, and applies certain transformations able to measure and reveal Market Participants with inconsistent behaviour. A dynamic threshold is calculated based on market activity at the selected time. Market Participants above the threshold are flagged for suspicious behaviour.
The Intelligent Assistant Tool is connected and ready to assist you in reviewing the cases, getting insights on the data and taking effective decisions whether to investigate further into these alerts.