Progress Software Corporation, a supplier of application infrastructure software used to develop, deploy, integrate and manage business applications, yesterday announced that the Financial Services Authority (FSA), the independent non-governmental body that regulates the UK financial services industry, will utilise the Progress Apama Event Processing Platform to power SABRE II, the FSA’s transaction monitoring and market abuse detection system.
The SABRE II market surveillance system is being developed by business and technology consultancy Detica Group, who signed a deal with the FSA in December 2006 expected to be worth approximately £17 million over a seven year period.
"The Apama element of SABRE II will help Detica and the FSA identify patterns of behaviour on the UK financial markets," comments Dr. Giles Nelson, director of technology, Progress Software. "It will enable them to identify when market abuse is occuring, for example when traders collaborate to move a particular stock price."
The Apama Business Activity Monitoring (BAM) capabilities will provide visibility to the FSA's Transaction Monitoring Unit (TMU) through real-time graphical dashboards that alert TMU staff of potential abuse.
"With the real-time Apama platform, the regulators will be able to identify any issues quickly and potentially prevent them as well, rather than having to store and analyse information overnight and identify problems after the market has been moved and people have lost or made money unjustly," notes Nelson.
The Apama platform's complex event processing (CEP) technology will enable SABRE II to monitor, analyse, and act on patterns of securities trading in real-time. The Apama graphical CEP development tool, Event Modeller, will allow the FSA to detect both current and new forms of abuse and respond quickly to the changing demands of the MiFID directive, according to Progress Software.
"We expect strong interest for this offering among investment banks, regulators, and exchanges going forward and look forward to working with Progress to deliver on these opportunities," comments Simon Aspen-Taylor, head of market and regulatory services, Detica.