HKEX installs Nasdaq’s machine learning surveillance technology

Nasdaq signs its first exchange operator in Asia to use SMARTS surveillance system.

Hong Kong Exchanges and Clearing (HKEX) has become the first exchange group in Asia to deploy market surveillance technology from Nasdaq.

Nasdaq SMARTS market surveillance machine learning and participant relationship discovery technology will be used across the exchange operator’s equity market.

HKEX’s market surveillance team worked closely with Nasdaq on the implementation of the technology for analysing trading activities and their subsequent categorisation by surveillance analysts.

The algorithms aim to predict which actions analysts could take based on historical dealings alongside new relationships within the data.

“As a market operator, we have always strived to be at the forefront of embracing and applying emerging technologies that will strengthen the integrity of our markets,” said Garbo Cheung, head of market surveillance and monitoring, HKEX.

“We look forward to continuing our collaboration with the SMARTS team in further building our machine learning capabilities in our market surveillance endeavours.”

Valerie Bannert-Thurner, head of risk and surveillance solutions at Nasdaq, added that HKEX has been heavily involved in contributing to the partnership and embracing the new technology.

“The evolution of SMARTS is heavily driven through client collaboration and our mutual interest in improving and maintaining market integrity, and we look forward to supporting their continual innovative approach to market surveillance,” she said.

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