How AI-Powered Trade Surveillance Can Safeguard Your Firm
How AI-Powered Trade Surveillance Can Safeguard Your Firm
In today's complex financial landscape, firms face numerous challenges in detecting and preventing illicit trading activities. Regulatory requirements are becoming increasingly stringent, and the consequences of non-compliance can be severe. Aerial View's AI-powered trade surveillance platform is designed to help firms stay ahead of potential risks and ensure compliance with regulatory requirements.
At the heart of Aerial View's platform is its advanced AI capability, which enables the ingestion and analysis of vast amounts of trade data. The platform's architecture is composed of four primary components: Front End, Surveillance Models, Trade Data ETL, and Market Data.
Front-End Difference
The Front End of Aerial View's platform is a cutting-edge interface that leverages AI-generated content to present complex trade surveillance data in a clear and concise manner. This enables compliance officers to quickly identify potential issues and take action to mitigate risks.
The Surveillance Models component is comprised of over 100 models based on global regulations, utilizing machine learning and AI to scan client trading activity for prohibited or abusive activity. These models are designed to detect a wide range of potential issues, including spoofing, insider trading, and wash trades.
The Trade Data ETL component is a robust platform that accepts trade data from clients and exchanges in all asset classes, validating and transforming it into a common structure for analysis. This ensures that firms can easily integrate their trade data into the Aerial View platform, regardless of the asset class or exchange.
The Market Data component provides indicative and intraday pricing for securities in all asset classes, enabling firms to stay up-to-date with market trends and potential risks.
One of the key benefits of Aerial View's platform is its ability to provide a concise and informative executive summary of the data produced by compliance actions. This summary is generated using AI and provides compliance officers with a clear overview of potential issues and areas of focus.
Case Example
For example, an Aerial View AI Summary might highlight the following potential issues:
Three high-confidence spoofing events occurred for equity symbol RSGM from 1:30 to 1:45, 1:50 to 2:10, and 2:50 to 3:10.
A medium-confidence insider trading event on symbol FTY occurred two weeks ago and was detected now.
A configuration issue triggered 197 wash trades alerts, with the Clock Float tolerance parameter changed yesterday at 1:17.
Fixed income, futures, and options models ran successfully with no priority alerts.
The equity input job failed last night, and customer support is aware of the issue.
Fixed income models ran without market data, with full results available at 10:30 AM.
There were nine US Treasury trades with no reported commission and one muni bond trade with a 5.7% commission, exceeding the 5.0% limit.
The platform's advanced AI capabilities, combined with its robust architecture and concise executive summary, make it an essential tool for firms looking to safeguard their trading activities.
Powerful Solution
Aerial View's AI-powered trade surveillance platform is a powerful solution for firms looking to detect and prevent illicit trading activities. By harnessing the power of AI and machine learning, firms can stay ahead of potential risks and ensure compliance with regulatory requirements. With its advanced architecture and concise executive summary, Aerial View's platform is an essential tool for firms looking to safeguard their trading activities and maintain a strong compliance framework. You can find out how by contacting us today to schedule a demo.