Nasdaq's SMARTS Launches Trade Surveillance Monitoring for Dark Pools
October 08 2015 - 7:01AM
New Capabilities Brings Transparency to Dark Trading Activity
NEW YORK, Oct. 8, 2015 (GLOBE NEWSWIRE) -- Nasdaq
(Nasdaq:NDAQ), the world's leading provider of trade surveillance
technology to marketplaces, regulators and market participants, has
officially launched new trade surveillance monitoring capabilities
for dark trading activity alongside its award-winning SMARTS Trade
Surveillance platform.
"Trade surveillance can no longer be limited to
lit trading," said Rob Lang, Vice President, Business and Product
Development, Risk & Surveillance Solutions, Nasdaq. "Regulators
globally are taking a more active role in monitoring and enforcing
greater transparency in the trading of listed instruments away from
lit venues generally, and of trading behaviors within dark pools
specifically. We see the need to address these new demands and
support dark venue operators and those executing in the dark to
boost their surveillance capabilities and help them stay in
compliance."
The new module, SMARTS Surveillance for Dark
Pools, helps Multilateral Trading Facilities (MTF), Alternative
Trading Systems (ATS), Crossing Networks, and market participants
internalizing order flow or trading in external dark venues to
monitor for potentially abusive behavior taking place in the dark.
Jurisdictions such as Hong Kong, Australia and Europe, amongst
others, have already passed regulatory mandates in relation to dark
trading. SMARTS Surveillance for Dark Pools will better position
dark venue operators and participants to more effectively meet
requirements and demonstrate a proactive approach to surveillance
of dark trading.
- For dark venue operators, like MTFs and ATSs,
these capabilities will enable them to monitor trading across all
of their clients, like an exchange, to ensure market integrity.
Using SMARTS, venue operators that also own broker-dealers would
also be able to demonstrate that internal desks are not trading
ahead of client orders on knowledge, further improving the
integrity of the pool.
- For Crossing Networks or Systemic
Internalization, the solution helps demonstrate system integrity in
that the liquidity pool operates as advertised, in addition to
helping identify potentially malicious behavior that is hidden in
the network or any mispricing or fair pricing issues for trades
that executed internally.
- For executing brokers, SMARTS Surveillance for
Dark Pools enables firms the same cross-market, cross-asset
monitoring and alerting capabilities as have proven successful in
lit markets, with the ability to view dark executions within the
full context of all of the markets traded.
SMARTS Surveillance for Dark Pools covers the full
range of market manipulation and abuse behaviors from price
manipulation to insider trading, front running, and cross-market
(lit vs dark) manipulation, amongst others.
"In order to ensure integrity and compliance, dark
venue operators and participants internalizing or crossing order
flow, or externally participating in dark venues, need to have
processes and systems in place to monitor activity for manipulative
trading," said Michael O'Brien, Head of Product Development, SMARTS
Trade Surveillance. "Not only does this support regulatory
compliance needs, it is simply good business practice, particularly
in a quickly evolving marketplace like dark pools."
SMARTS Surveillance solutions power monitoring
capabilities for more than 100 market participants across 65
markets, and over 50 marketplaces and regulators.
For more information, visit
business.nasdaq.com/tech.
About Nasdaq
Nasdaq (Nasdaq:NDAQ) is a leading provider of
trading, clearing, exchange technology, listing, information and
public company services across six continents. Through its diverse
portfolio of solutions, Nasdaq enables customers to plan, optimize
and execute their business vision with confidence, using proven
technologies that provide transparency and insight for navigating
today's global capital markets. As the creator of the world's first
electronic stock market, its technology powers more than 70
marketplaces in 50 countries, and 1 in 10 of the world's securities
transactions. Nasdaq is home to more than 3,600 listed companies
with a market value of approximately $9.6 trillion and more than
10,000 corporate clients. To learn more, visit: nasdaq.com/ambition
or business.nasdaq.com.
NDAQG
CONTACT: For Media Inquiries:
Nasdaq:
Ryan Wells
ryan.wells@nasdaq.com
Direct: +44 (0) 20 3753 2231
Mobile: +44 (0) 7809 596 390
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Nasdaq via Globenewswire
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