The Nigerian Stock Exchange, NSE, on Monday said it has launched a new technology that would help it monitor market manipulation and supervise participants at the stock exchange.
A notice sent by Joseph Kadiri, NSE media officer, said the decision came on the heels of a partnership agreement between the NSE and Nasdaq.
The initiative, the notice said, is a new market surveillance platform powered by SMARTS, Nasdaq’s flagship surveillance solution.
The technology will, amongst other things, enable NSE to “proactively monitor market manipulation (including spoofing and layering), detect and deter manipulative tendencies, gather intelligence, carry out traders’ monitoring and analysis, conduct multi-asset and cross-market surveillance, and execute risk-based supervision of flagged participants.’’
“As we enter the growth phase of the development of our market, including the introduction of new asset classes such as derivatives, there will be the imperative of processing significant volumes of market information in real-time to detect anomalies,” said Tinuade Awe, General Counsel and Head of Regulation, NSE.
She explained further that the SMARTS technology, which the stock exchange has successfully deployed, allows its team to proactively analyse patterns and trends to make sense of the vast amounts of data for investigative purposes and protection of investors, while strengthening the integrity of the market.
“Through SMARTS, NSE is leveraging the latest in surveillance technology and demonstrating its commitment to fostering a strong marketplace,” said Tony Sio, Head of Exchange & Regulator Surveillance, Market Technology at Nasdaq.
“SMARTS performs universal surveillance of all asset classes and provides a strong platform for NSE to develop new products such as derivatives. We look forward to a long partnership with the NSE as the Nigerian markets evolve.”
Mr. Kadiri also said that Nasdaq SMARTS surveillance solutions have been the industry benchmark for real-time, cross-market, cross-asset surveillance for more than 22 years.
Used by over 3,500 compliance professionals around the world, he said, SMARTS currently powers surveillance at 47 marketplaces, 17 regulators and 140+ market participants across 65 countries.