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Regulator unveils market surveillance system
29 November 2013
Australian Securities & Investments Commission enhances ability to police trading
The Australian Securities & Investments Commission (Asic)
has introduced a new market surveillance system known as MAI
(market analysis intelligence) to help it detect, investigate
and prosecute trading breaches.
The system provides sophisticated data analytics to identify
suspicious trading in real time and across markets, as well as
greater levels of detection of insider trading, said
commissioner Cathie Armour.
"It is built around algorithmic trading technology and gives
Asic the ability to analyse trade data for patterns and
relationships. This provides us with even greater means to
catch insider trading and more broadly, detect market
Senior executive leader of market and participant supervision,
Greg Yanco, said MAI was purpose built and designed to handle
the dynamism of financial markets. "It will be able to handle
the continued increase in high frequency trading and
algorithmic trading and improves on technology that was
previously designed for a single market."
The new system enables Asic to interrogate very large data sets
and monitor market activity, consistent with the increased use
of technology in day-to-day trading, Yanco added. "It can also
handle the continued increase in trade and message data, which
could reach one billion messages per day."
MAI is designed, built and hosted by First Derivatives and is
based on technology used in financial markets for market data
capture, alerts and analytics and high frequency and