Categories: Analysis

Nasdaq strengthens market surveillance with GenAI

Stock exchange operator Nasdaq is integrating a GenAI-based feature into its market surveillance technology.

Nasdaq said the feature will increase the quality, speed and efficiency of market abuse investigations conducted by its clients and streamline the triage and investigation process when investigating suspected manipulation and insider trading.

For example, the technology can produce a consolidated table of the company’s regulatory filings, summaries and links to company, industry and industry news, news sentiment analysis and other mitigating or aggravating factors that may impact a particular security.

Nasdaq used AWS’s Amazon Bedrock service to develop GenAI applications. During proof-of-concept testing, surveillance analysts estimated a 33% reduction in exam time with improved overall outcomes.

Nasdaq now plans to use the GenAI-enabled functionality to monitor the US stock market.

Tony Sio, head of regulatory strategy and innovation at Nasdaq, said: “By leveraging the latest innovations in cloud technology and artificial intelligence, we can better respond to emerging threats and provide the global financial system with advanced tools to combat market abuse more effectively. “”

David Brooks

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