About a-team Marketing Services
The leading knowledge platform for the financial technology industry
The leading knowledge platform for the financial technology industry

A-Team Insight Blogs

Australia’s ASIC Taps First Derivatives Big Data Solution for Market Surveillance

Subscribe to our newsletter

The Australian Securities & Investments Commission (ASIC)’s selection of First Derivatives’ Delta Stream+ Market Surveillance solution is aimed at giving the regulator the same kinds of tools available to high frequency traders for monitoring market activity and identifying possible fraudulent behaviour.

The deployment of Delta Stream+ is seen as an early application of big data technologies to the challenge of market surveillance. The platform is based on First Derivatives technologies that are already used by practitioners for market data capture, alerts and analytics and high frequency and algorithmic trading.

According to Gerry Buggy of First Derivatives, “We are seeing the ability to support massively scalable tick-by-tick data capture – together with synchronised time-stamping and integration of both structured and unstructured data – as essential ingredients of any big data project in capital markets. This data may reside in a broad array of repositories, such as Hadoop, and our ‘on-ramp’ capabilities allow us to capture this data, whatever its source. Delta Stream+ can then run queries against this data. This allows clients to use our ‘off-ramp’ architecture to generate unprecedentedly sophisticated analytics such as those used to identify fraudulent trading activity.”

The new surveillance system – which is expected to go live in mid-2013 – will allow ASIC to cope with anticipated future increases in message traffic, the emergence of new trading technologies, increased competition between trading venues and the ongoing globalisation of capital markets.

The surveillance system will promote the integrity of our financial markets through the prevention, detection and deterrence of market misconduct, and provide a greater capability to monitor all types of trading across markets as well as across different products.

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. The system will have multiple layers of security built into it, ensuring that ASIC maintains control over data at all times, and will allow for a robust framework that will deliver significant benefits to ASIC’s work, including:

– Functionality that is appropriate for the Australian market, and flexible for a changing trading environment; and

– Advanced analytics that will allow for the analysis of complex data sets and the ability to connect patterns and relationships.

Selection of First Derivatives followed a competitive tender process. ASIC says a thorough evaluation process has also ensured that the new system will represent value for money for ASIC and the market participants and operators that fund ASIC’s market supervision through cost recovery. “The total cost of the system is well under the maximum that was allowed for, which is a significant saving for the industry,” it said in a statement.

ASIC will continue its surveillance relationship with Smarts, a relationship that assisted ASIC to assume market supervision responsibilities from ASX in 2010.

Subscribe to our newsletter

Related content

WEBINAR

Upcoming Webinar: Deploying market infrastructure managed services

Date: 25 May 2022 Time: 10:00am ET / 3:00pm London / 4:00pm CET Duration: 50 minutes Traditionally, trading organisations have procured and managed hardware themselves or through a third-party to support data services in a hosted environment – but as large firms look for efficiencies and smaller firms seek external help so they can focus...

BLOG

Cosaic and Aiera Partner to Deliver Plug-and-Play Desktop Interoperability

Smart desktop technology specialist Cosaic – formerly known as ChartIQ – has partnered with Aiera, an event-monitoring platform to provide plug-and-play interoperability of Aiera’s components with other applications on client desktops. Aiera allows hedge funds, banks and corporates with live monitoring of Wall Street events, via desktop and mobile applications and APIs. Aiera used Cosaic’s...

EVENT

TradingTech Summit London

Now in its 11th year the TradingTech Summit London brings together the European trading technology capital markets industry, to explore how trading firms are innovating in today’s cloud and digital based environment to create flexible, scalable trading platforms to support speed to market and business agility.

GUIDE

Tackling the Data Management Challenges of FATCA

As the July 1, 2014 deadline for compliance with the Foreign Account Tax Compliance Act – or FATCA – approaches, financial institutions around the world are working to ensure their data management and operational systems will meet the requirements of the US legislation. This report discusses the requirements of FATCA and how the legislation is...