AI Case Study

Nasdaq purchases AI software company Sybenetix to monitor and flag unusual trader activity using AI

Nasdaq has purchased the AI software company Sybenetix which attempts to detect suspicious trading activity at the level of individual traders. It does so by analysing historic behaviour of traders to determine unusual behaviour.

Industry

Financial Services

Investment Banking And Investment Services

Project Overview

Sybenetix "software learns the behaviour patterns of individual traders at an asset manager or hedge fund and can raise the alarm for their employer when they do something out of character — something designed to make it more precise in flagging up suspicious trading and avoid a lot of costly false alarms.
For example, a trader who has avoided securities for a long time after suffering a loss on them suddenly dives back into a losing position. This triggers an alarm in the monitoring system and sends an alert to the fund’s compliance team."

Reported Results

Planned; results not yet available

Technology

"Behavioural algorithms"

Function

Risk

Audit

Background

"Nasdaq has agreed to buy a London-based software company that uses artificial intelligence to sniff out rogue traders.... The group will sit in Nasdaq’s market technology business which contributed 12 per cent of the group’s net revenue in the first quarter and grew by 18 per cent, the highest growth rate of the company’s business lines."

Benefits

Data

Undisclosed