Whisper it quietly, but MillenniumIT, the technology services division of the London Stock Exchange Group, is throwing open the doors to its library of alert algorithms.
Alert algorithms are used by exchanges’ and brokers’ market supervision teams to monitor patterns of suspicious trading activity.
To keep up with changes in regulation and – perhaps more importantly – innovative market abuse practices, surveillance technologies such as alert algorithms must be upgraded frequently.
To help compliance and surveillance teams keep pace, MillenniumIT has developed an Alert Algorithm Library which is available online.
The library will incorporate an alert portfolio that reflects current market trends, thus “allowing customers to respond to a constantly changing environment”.
Market participants and operators have been increasingly focused on surveillance in recent years. In 2012, guidelines were introduced by the European Securities and Markets Authority for systems and controls in an automated trading environment. MiFID II and the Market Abuse Directive have subsequently increased scrutiny.
The portfolio can be downloaded free of charge and deployed by users of the Millennium Surveillance system without the need for system updates.
Users can also download user manuals and test scripts as well as upload them to their pre-production environment for testing on their systems. MillenniumIT will also extend the automated testing framework with required test cases and scripts to minimise testing cost and time.