Market Abuse Trade Surveillance

Pro-active surveillance across all asset classes

Market abuse regulations (MAR) oblige financial institutions operating in financial markets (Equities, Foreign eXchange, Fixed Income, Commodities, etc….) to surveil their own activities to identify and report market abuse. A suspicious transaction or order is one where there are ‘reasonable grounds’ to suspect it might constitute market abuse, such as insider dealing or different market manipulation scenarios that are known and are well described by Regulators, or will be unveiled during the next regulatory review. In fact, markets are evolving and there are expectations of growing impact of regulation, especially on new type of activities such as crypto trading. In this context it is essential to ensure adequate response to the current and future market abuse regulations by having the next-generation solutions in place.

How can you make sure that your surveillance program detects and reports all the existing scenarios across the asset classes where your firm operates? And what about the unknown unknowns, the activity that your firm is not yet aware of? Can you be more pro-active to unveil these unknowns and the emerging patterns of market abuse?

Our answer is eyeDES®

Trade Surveillance solution driven by Artificial Intelligence

eyeDES® is the only Pro-active Surveillance Solution that detects and explains any Market Abuse across all asset classes.

Reduces the number of False Positives by issuing only high-quality alerts explained in plain language
Minimizes your risk of penalties by detecting all known scenarios, as well as the emerging patterns (the unknown unknowns)
Instantly evolves with the market dynamics and volatility
Works across all asset classes without any changes or calibration
Deployable on your premise or available in the cloud

The Trade Surveillance solution is based on our unique Zero-Parameter AI driven technology. The solution platform can be configured to detect cases at any granularity level (trader, account, trading desk, warehouse, beneficial owner).

The trader and market data are ingested into a Zero-Parameter library of Building Blocks via which the software is monitoring the trader behaviour and the market activity.
Because it employs a parameter-free technology, the solution can be used across all asset classes without any changes, model training, maintenance, or calibration. This generates a huge reduction in cost and time.

eyeDES® detects with high accuracy not only known scenarios like Spoofing, Layering, Wash Trades, Front Running, Insider Trading, etc. but it also identifies emerging patterns of market abuse. No other Trade Surveillance solution has this Pro-active capability.

eyeDES process diagram

The software is continuously monitoring the trader behaviours and market activity via a Zero-Parameter library of Building Blocks (BB) that describe fundamental behaviours. During monitoring some BB’s might be activated at different time intervals.

The Detection Engine spots the suspicious time intervals, matches the activated BB’s with a manipulative scenario and raises the cases as alerts. Each alert is accompanied by a score with explanations and narrative in human plain language. Additionally, the engine flags emerging patterns of market abuse.

The Case Management is fully configurable. It issues prioritized queues of alerts and it assists the users in reviewing the cases, getting insights in the trader behaviour and market activity, and taking effective decisions whether to escalate an alert. The reporting is automated, and each case is accompanied by a score, explanations and narrative in human plain language.