Exchange operator and technology provider Nasdaq OMX has extended its SMARTS surveillance solutions suite to the foreign exchange market.
The SMARTS FX Trade Surveillance module is designed to help buy- and sell-side compliance teams to monitor FX trading for possible manipulation of rate fixes, insider trading, front running, unusual pricing and other behaviours.
The offering can be used to track and analyse trading in individual currency pairs across spot, forward and non-deliverable forward instruments, with options to be added in due course.
Users will also be able to compare their trading activities against feeds from multiple market data providers as well as their own firms’ quoted spread in a single view.
“As the regulatory requirements in the FX market continue to evolve, it has been a challenge for brokers and their compliance teams to identify where to initiate monitoring activity and to focus their resources,” said Rob Lang, global head of SMARTS. “Through a co-development initiative with six major FX trading firms, SMARTS has worked to define the behaviours that support the FX surveillance priorities of these industry players, as well as develop a set of now-deployed alerts within the unique data constraints of the FX markets.”
Clients can use SMARTS to source, capture and maintain all trading data elements required to conduct in-depth analysis for cross-market, cross-asset market abuse and market manipulation across equities, options, commodities, fixed income, energy and futures.