The Investment Industry Regulatory Organization of Canada (IIROC) and Nasdaq have released an improved surveillance technology.
IIROC has released its new market surveillance system which uses Nasdaq’s SMARTS technology to enhance the oversight of capital markets and protect investors from potential market abusers.
In leveraging the SMARTS technology, IIROC will be able to improve detection and responses to potential market abusers, fostering greater confidence in Canada’s capital markets. The regulator directly manages and maintains the system which monitors up to one billion daily transactions in real-time and aids cross-asset surveillance and investigations.
One of the new benefits to this tool is that IIROC’s market surveillance team will be able accelerate detection of anomalies across multiple products and firms and identify and respond to emerging trends. New visualisation tools will take multiple sources of data and distill them into a single snapshot which will give a clear idea of next steps.
Nasdaq is a global provider of trading, clearing, exchange technology, listing, information and public company services. Its surveillance solution is used in over 50 marketplaces, 18 regulators, and over 170 market participants spanning 65 countries.
IIROC senior vice-president, market regulation Victoria Pinnington said, “IIROC is positioned at the forefront of market surveillance in Canada, thanks to Nasdaq’s real-time, multi-asset, state-of-the-art SMARTS technology.
“We are setting the stage for our future with a system designed to improve how we oversee securities trading on debt and equity markets, by opening the door to use artificial intelligence that is more analytical and predictive.”
IIROC is responsible for monitoring all equity and debt market activity in Canada to ensure trading is carried out in accordance with regulations and laws. Last month, the body received approval in order to require the inclusion of a client identifier on each order for a listed security sent to a marketplace and on reportable trades.
Earlier in the year, Nasdaq sold its enterprise governance, risk and compliance (GRC) software platform BWise to SAI Global Pty.
Copyright © 2018 RegTech Analyst
