NICE, a provider of cloud and on-premises enterprise software solutions, has enhanced its markets surveillance solution to help firms comply with MiFID II.
NICE Actimize has enhanced its solution to help firms comply with the MiFID II microsecond requirement for high frequency trading, while improving firms’ ability to detect and mitigate market abuse.
MiFID II, which went into effect on January 3rd, requires firms to monitor communications and transactions for Market Abuse and sets a higher bar for High Frequency Trading. It requires such trading activity to be monitored at the microsecond level. If firms that do not comply with this stipulation they risk fines or reputational damage.
High Frequency Trading (HFT), a type of trading that uses computers to execute large volumes of orders at very fast speeds, is prone to market manipulation. The volume and velocity of high-speed, automated trading can make market abuse more difficult to detect. MiFID II’s microsecond requirement was created to address the issue.
NICE Actimize’s Markets Surveillance Solution now enables firms to adhere to the regaultions requirement by ingesting transactional and trade records from Order Management and Execution Management systems at the microsecond level for all High Frequency Trades.
It also analyses High Frequency Trading data at the microsecond level to detect market abuse, using NICE Actimize’s detection analytics. The analytics are run on data captured at the microsecond level, meaning detection accuracy is increased while false positives are reduced.
“Because High Frequency Trading is executed in extremely high volumes at extremely rapid speeds, it really demands greater granularity and precision with respect to monitoring transactions,” said Chris Wooten, executive vice president, NICE. “With NICE Actimize’s Market Surveillance Solution, firms can have complete confidence in their ability to comply with the MiFID II microsecond requirement around monitoring High Frequency Trades, while safeguarding their firms’ reputations from the scourge of market abuse.”
NICE Actimize claims to be the largest and broadest provider of financial crime, risk and compliance solutions for regional and global financial institutions, as well as government regulators.
Its experts apply technology to protect institutions and safeguard consumers and investors assets by identifying financial crime, preventing fraud and providing regulatory compliance. The company provides real-time, cross-channel fraud prevention, anti-money laundering detection, and trading surveillance solutions that address such concerns as payment fraud, cybercrime, sanctions monitoring, market abuse, customer due diligence and insider trading.
Earlier this year, NICE announced its next generation Suspicious Activity Monitoring (SAM) solution, which combines machine learning analytics for laser-accurate crime detection with robotic process automation. It claims its solution virtually eliminates the manual search for third party data, increasing team productivity, and reducing investigation time for a single alert by up to 70%.
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