THE Nigerian Stock Exchange, NSE, has launched a new market surveillance platform, Nasdaq SMARTS Market Surveillance Technology, to nip stock market manipulation in the bud. The technology will, among other things, enable NSE to pro-actively monitor market manipulation (including spoofing and layering), 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.
Commenting on the new technology, Ms. Tinuade Awe, General Counsel and Head of Regulation, NSE, said: “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 pro-actively 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. Through SMARTS, NSE is leveraging the latest in surveillance technology and demonstrating its commitment to fostering a strong marketplace,” said Tony Sio, Head, Exchange & Regulator Surveillance, Market Technology at Nasdaq. 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.”