Integrated surveillance provider, SteelEye has expanded Compliance CoPilot by integrating its trade surveillance capabilities. Leveraging advanced large language models (LLMs), the enhanced tool provides automation, intelligent analysis and actionable insights, enabling compliance practitioners to prioritize high-risk alerts and streamline their review workflow.
By intelligently scoring and prioritizing alerts, the Compliance CoPilot allows analysts to focus on the most critical risks, significantly reducing manual review time by up to 90%. Compliance CoPilot has been in production for communications surveillance since November 2023, the AI-powered integration with trade surveillance now offers comprehensive alert explanations and provides recommendations for categorizing and resolving alerts, complete with rationales.
The increasing interconnectedness and complexity of financial markets have empowered wrongdoers to adopt more sophisticated market manipulation tactics, such as cross-product manipulation—a form of abuse where trades in one product are used to manipulate the price of another. See the recent RegTech Insight story on SteelEye’s Cross-product manipulation detection capability.
Surveillance teams face the dual challenge of detecting these advanced abuses while managing a surge in alert volumes amid tightening budget constraints. “Compliance staff are under immense strain, overwhelmed by volumes of suspicious trading alerts each day,” said Matt Storey, Chief Product Officer at SteelEye. “The ability to prioritize the most important alerts is essential for bolstering firms’ risk management practices. The Compliance CoPilot empowers teams to operate more effectively and proactively, becoming the go-to sidekick for surveillance officers.”
According to SteelEye’s 2024 Annual Compliance Health Check Report, spending on compliance has decreased significantly compared to 2023, even as market abuses like cross-product manipulation become more prevalent. With a 30% increase in reported market abuse cases this year, firms are under more pressure than ever to improve their surveillance capabilities. By allowing firms to intelligently manage their workload and focus on the most urgent alerts, the AI-enabled assistant enhances the efficiency and accuracy of surveillance functions. It also affords firms more time to assess and strengthen their market surveillance capabilities on a broader scale.
Built with compliance-specific AI, the Compliance CoPilot provides transparent explanations and rationales for its recommendations, ensuring trust in its operations. The tool integrates seamlessly into existing workflows for SteelEye users, offering an immediate boost to their surveillance operations without disrupting established processes.
In an era of escalating market complexities and tighter budgets, SteelEye’s enhanced Compliance CoPilot offers a comprehensive tool for firms aiming to stay ahead of sophisticated market manipulation tactics. For more insights from the 2024 Compliance Health Check Report, visit the SteelEye website.
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