In a bid to reduce manipulative tendencies and foster a strong capital market, America’s electronic market backbone, NASDAQ has announced its partnership with the Nigerian Stock Exchange (NSE) in launching SMARTS Market Surveillance Technology (SMST).
The technology will, among other things, enable NSE to proactively monitor market manipulation, detect and deter manipulative tendencies, gather intelligence, carry out traders’ monitoring and analysis, conduct multi-asset and cross-market surveillance and execute risk-based supervision of flagged participants.
In a statement released on NSE’s website yesterday, General Counsel and Head of Regulation, NSE, Tinuade Awe, said the imperative of processing significant volumes of market information in real time to detect anomalies was the reason the Exchange decided to deploy SMARTS.
“As we enter the growth phase of the development of our market, including the introduction of new asset classes such as derivatives, there will be the imperative of processing significant volumes of market information in real-time to detect anomalies.
“The SMARTS technology, which we have successfully deployed, allows our team to proactively analyse patterns and trends to make sense of the vast amounts of data for investigative purposes and protection of investors, while strengthening the integrity of our market,” the statement said.
Head, Exchange and Regulator Surveillance, Market Technology, NASDAQ, Tony Sio, thereafter said, “through SMARTS, NSE is leveraging the latest in surveillance technology and demonstrating its commitment to fostering a strong marketplace and SMARTS performs universal surveillance of all asset classes and provides a strong platform for NSE to develop new products such as derivatives. We look forward to a long partnership with the NSE as the Nigerian markets evolve.”
NASDAQ SMARTS Surveillance solutions have been the industry benchmark for real-time, cross-market, cross-asset surveillance for 22+ years and is used by over 3,500 compliance professionals around the world. SMARTS currently powers surveillance at 47 marketplaces, 17 regulators and 140+ market participants across 65 countries.