Sterling Trader has teamed up with Nasdaq OMX to offer market surveillance solution for the buy-side.
The deal will see Chicago-based Sterling Trader offer Nasdaq's SMARTS broker software as a service (SaaS) surveillance solution to its buy-side customers.
Access to market surveillance software will enable buy-siders to monitor trading activity for malicious trading behavior, such as layering, spoofing and insider trading. The software can also detect suspicious activity across trading venues to assist in preventing market abuse.
Stephen A. Sierszulski, CEO of Sterling Trader, said: "There is strong demand from our buy-side customers for a surveillance solution that's quick-to-market and one which robustly monitors trading activity for better transparency."
SMARTS Broker provides analysis and alerting capabilities for various forms of market abuse, including violations of order handling rules and irregular trading patterns by automated and high frequency trading platforms.
Using market surveillance software will assist buy-side firms with their regulatory compliance needs at a time when they are increasingly under pressure to increase their surveillance, according to Nasdaq OMX's vice president of market technology, Peter McKeown.
The SMARTS Broker system is currently used by more than 60 tier-one and tier-two dealers globally, with support for equities, derivatives and OTC markets. It operates across 40 national exchanges and regulators.