.To curb share fraud
In its bid to curb market infractions and manipulation, The Nigerian Stock Exchange (NSE), has moved a step further with the adoption a globally accepted market scrutiny technology, the Nasdaq Smart market surveillance.
The new market surveillance platform, powered by SMARTS, Nasdaq’s flagship surveillance solution to curb share manipulation, has been inaugurated by the NSE.
Nasdaq SMARTS Surveillance solutions have been the industry benchmark for real-time, cross-market, cross-asset surveillance for 22+ years. Used by over 3,500 compliance professionals around the world, SMARTS currently powers surveillance at 47 marketplaces, 17 regulators and 140+ market participants across 65 countries.
The technology, the exchange explained, 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.
Tinuade Awe, general Counsel and Head of Regulation of the NSE, said, “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.”
She said that, the technology, which has been successfully deployed, allows NSE team to proactively analyze 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.
He said, “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.”