Nasdaq acquires Regtech Sybenetix to Catch Rogue Traders Using AI

Rogue Traders

Being a trader nowadays is really hard and now going “rogue” for that big payday is getting just impossible. Sybenetix, a London-based regulatory technology firm, is being acquired by Nasdaq to catch rogue (or improper) traders. The company uses AI (Artificial Intelligence) and algorithms to seek out and identify the “bad guys”. This technology will most certainly be a huge boon to the regulatory and compliance rules that banks, brokerages, etc have to adhere to.
(Bill Taylor/CEO)

Nasdaq acquired a London-based regulatory technology firm Sybenetix which uses algorithms to catch rogue traders, the company said on Tuesday.

The stock exchange said it is paying an undisclosed amount and intends to fund the purchase with cash.

“Nasdaq is investing in the technologies, talent and capabilities that solve the complex challenges our clients face,” Adena Friedman, president and CEO of Nasdaq, said in a press release on Tuesday

“We believe behavioral science, cognitive computing and machine intelligence are essential to a successful, holistic surveillance offering and critical to efficient and effective organizational compliance with an increasingly intricate global regulatory environment.”

Sybenetix uses algorithms to learn individual or group behavior at an organization. The software can then detect any unusual trading behavior and report that to the compliance team. Nasdaq already has some of its own risk and surveillance solutions, and the latest acquisition will add to its offerings.

There’s a rising interest in regulatory technology companies amid increasingly complex regulations being put on financial institutions. Last year, regulatory technology companies raised $732 million globally with 102 companies getting funding, marking the highest number of deals, according to CB Insights…”

Full Article at CNBC