Shanghai Futures Exchange works with Nasdaq to ramp up dirty dealing surveillance
Exchange becomes first mainland bourse to use SMARTS system to monitor trade activity for signs of market abuse
Shanghai Futures Exchange is partnering with New York-based Nasdaq in a bid to step up its surveillance to protect against insider trading and other forms of market malpractice.
The exchange, one of the largest futures markets in the world, has become the first mainland Chinese exchange to roll out a surveillance platform powered by Nasdaq’s flagship SMARTS system, the American exchange operator announced on Wednesday.
The new system gathers large volumes of data in real time and distils it into an easily readable snapshot, allowing Shanghai Futures Exchange to detect anomalies such as market abuse, said Nasdaq, which generates a quarter of its revenue through selling market technology.
The platform, which is currently used by both Hong Kong Exchanges and Clearing and the Securities and Futures Commission, also includes tools that help analysts make sense of vast amounts of data for investigative purposes.
“As the Chinese exchange continues to increase its footprint globally, it simultaneously needs market monitoring capabilities that are scalable and match this growth,” Nasdaq’s North Asia and Japan vice-president and regional manager Ulf Carlsson said.