Turquoise, a multi-lateral trading facility (MTF) established by nine European investment banks, today announced that it is partnering with Progress Software and Detica to deliver a real-time market surveillance system.
The market surveillance system is designed to capture breaches of trading rules, root out market irregularities, and develop enhanced trading execution analytics, say the firms.
“Market surveillance is a vital requirement for any stock exchange,” remarks Eli Lederman, CEO, Turquoise. The system is not designed to detect fraud of the nature seen last week at Société Générale, where one trader left the firm €4.9 billion (£3.7 billion) out of pocket, but could be used to prevent ‘fat finger’ errors, according to Lederman.
“The real-time detection of complex patterns in market activity will discourage any potential abusers, maintain an orderly market, and promote liquidity,” explains Dr. John Bates, founder and general manager, Apama division of Progress Software.
The market surveillance system is a key part of Turquoise’s offering because it allows the firm to analyse data related to CEP. “The combination of the Apama platform and Detica’s expertise allows us to add value to the market data we collect and offer further client services such as detailed analysis of transactions and a better understanding of price improvement and performance,” explains Lederman.
A number of firms other than Turquoise have also expressed an interest in working with Progress Software and Detica to deploy a market surveillance system, including UK regulator the Financial Services Authority (FSA) and a number of exchanges, according to Dr. Giles Nelson, director of technology, Progress Software. Nelson declined to comment on which other exchanges Progress Software is working with, or when he expects any future partnerships to be announced.