Neurensic has announced the launch of the trading industry’s first compliance tool that is powered by a cloud-based machine learning architecture.
The FinTech start-up – based in Chicago – explained that the SCORE surveillance platform is capable of identifying complex patterns in trading behaviour on a vast scale across multiple markets.
Neurensic has carried out beta testing on the tool and provided the surveillance technology to regulators, proprietary trading firms and futures commission merchants.
Chief executive officer at the company, David Widerhorn, explained as more than 80% of stock trading performed by high-speed computer algorithms – spoofing and layering practices have become a major issue in the capital markets.
“We now have the opportunity to help our customers gain a better understanding of regulatory risk by identifying trading strategies that closely resemble known illegal behaviours,” he said.
The start-up added that by automating the data integration and detection configuration process, “SCORE has also streamlined the surveillance deployment experience.”