SMARTS Market Surveillance
SMARTS Market Surveillance for Marketplaces & Regulators is the industry benchmark for real-time and T1 solutions for market surveillance, supervision and compliance.
In order to keep pace with sophisticated trading technology, and manipulation techniques being used to gain a trading advantage, both regulatory authorities and trading venues alike need the same level of sophisticated tools as trading professionals. For exchanges, the ability to maintain a fair, transparent and safe market is critical to attracting liquidity. For regulators, the ability to keep trading safe and maintain integrity throughout the jurisdiction is imperative. Proven at 50 marketplaces and regulators, SMARTS Market Surveillance is the industry benchmark for real-time and T1 solutions for market surveillance, supervision and compliance.
SMARTS Market Surveillance leverages 20 years of expertise from working with a wide range of needs – from simple to complex – to provide organizations with a robust platform to manage cross-market, cross-asset, multi-venue surveillance. The solution’s powerful visualization tools simplify the monitoring process by distilling complex information into a single snapshot that provides clear guidance on where to focus an investigation. Additionally, the solution correlates real-time and historical data with detection patterns to ensure early detection of unusual trading patterns that could be potential breaches of exchange or regulator trading rules and practices.
SMARTS Market Surveillance supports:
- Financial & Energy Regulators
- Inter-dealer Brokers
- Swap Execution Facilities
- Other Alternative Trading Venues
SMARTS Market Surveillance provides surveillance and market supervision analysts with the essential toolkit required to load and process billions of messages daily and to identify undesirable behavior via a suite of sophisticated alerts. A robust and flexible workflow is supported by market-leading analysis and visualization tools.
Beyond alerting to suspicious market activity, SMARTS Market Surveillance is delivered with a sophisticated suite of modules, which include robust tools for:
- Alert/incident management
- Alert/scenario maintenance
- Broker/trader activity queries
- Custom report generation and automatic reporting
- Data mining
- Graphical displays of trading activity
- Order book replay
- Market operations
- Market maker monitoring
- Market overview and statistical evaluation
- Market replay
Key Benefits Include:
Real Time Control The system alerts analysts to potential breaches of trading rules, unusual behaviour and market volatility in real-time, supported by an intuitive alert workflow management system.
Automated Market Abuse Detection Sophisticated algorithms detect patterns of market abuse, market manipulation and insider trading, enabling analysts to filter only events of interest. Developed from 20+ years of experience in detection of market abuse, SMARTS provides 60+ pre-configured alerts as well as the ability for users to tailor alerting algorithms to create their own alerts ad-hoc.
Flexible Alerting Language Enables users to build their own alert algorithms, to quickly and easily adjust to rule changes, and provides the ability to perform quick, ad-hoc queries.
Powerful Visualizations Provides clear graphic support of market analysis, enabling analysts to quickly and easily compare potentially abusive scenarios to normal market behaviour and then drill down to the order book and replay any transaction for any security during any time period.
Multi-Asset Surveillance Provides comprehensive coverage of all listed instruments on equity, futures and derivative markets.
Proven Cross-Market Capability Provides seamless consolidation of trading data from multiple venues, whether the data crosses asset classes or fragmented markets - a crucial requirement for crossmarket surveillance and supervision.
Reliable, Resilient and Scalable SMARTS Market Surveillance is proven in a number of massive volume implementations, including those across Nasdaq markets, and is able to process over 3 billion orders and trades on a live system, with further scalability possible.
Beyond Surveillance SMARTS Market Surveillance enables teams outside of the surveillance function to leverage the solution to meet their needs. SMARTS can be utilized for market operations, market marker monitoring and a variety of other use cases.
Ease of Data Access SMARTS provides fast open access to all data stored within the SMARTS system, including transactional, reference and alerting data, via SQL. Access is provided both to the individual rows as well as to derived and aggregate data, such as top-of-book, open orders at a point-in-time and daily totals.
Continuous Investment in R&D and Underlying Technology As the inventor of the electronic exchange, passion for technology is in Nasdaq’s DNA. There is continuous investment into SMARTS technology infrastructure and software to ensure that it is efficient and up-to-date with latest technology advancements.
Unparalleled Domain Expertise Nasdaq’s dedicated teams leverage 20 years of practical experience and combined market surveillance software development acumen with strong academic collaborations and customer partnerships to facilitate continuous innovation and best practices in surveillance technology. Additionally, owning and operating 20+ venues enables Nasdaq to provide customers truly unique surveillance advisory to set up systems, processes and strategies to best meet each venues’ distinct surveillance needs.