AI Detection of Trading Abuse in Financial Markets

Features Analytics' eyeDES® trading surveillance platform uses machine intelligence to detect market abuse at any level and in near real-time.

Delivering surveillance down to individual traders, Features Analytics’ proprietary algorithms are 100 times more accurate than existing solutions. Investment banks, market infrastructures and exchanges can defend against regulatory fines, confident that every trade is analysed.

Industry Challenges. Cases of market manipulation have increased with billion-dollar fines levied on global banks after investigations identified sophisticated schemes to rig markets. Abuse crosses international borders, regulatory jurisdictions and is regularly coordinated outside of approved communication methods. Existing platforms rely heavily on known scenarios and cases, making it almost impossible to detect constantly evolving manipulation, resulting in high levels of false positives.

Solution. Features Analytics’ eyeDES® is the only solution in the market to instantly collect, structure and transform trading data. eyeDES® produces intelligent insights, describes market behavior and detects any violation without the need for rules or parameters being set. eyeDES® capabilities:

• Unbiased detection of suspicious trading activity in near real-time
• High-quality alerts with more than 90% reduction of false positives
• Identifies suspicious market events, new scenarios and hidden elements
• Describes and measures activities across market participants, traders and accounts
• Analyses Foreign eXchange, Equities, Fixed Income and other financial instruments
• Case management systems allow compliance teams to track, audit and deal with investigations

Benefits

• Catch unknown market abuse cases in human and algorithmic trading
• Reduce compliance costs and provide full accountability
• Defend against billion-dollar fines