Exchange operator Nasdaq is integrating a GenAI-powered feature into its market surveillance technology. This advancement is designed to enhance the quality, speed, and efficiency of market abuse investigations conducted by its clients, streamlining the triage and examination process for suspected manipulation and insider trading.
The new technology can generate a consolidated table of a company’s regulatory filings, along with summaries and links to relevant news about the company, sector, and peers, as well as news sentiment analysis and other factors that may influence the security in question.
Nasdaq is utilizing AWS’s Amazon Bedrock service to develop these GenAI applications. During proof-of-concept testing, surveillance analysts noted a 33% reduction in investigation time with improved overall results.
The company is now preparing to implement this GenAI functionality for its US equity market surveillance. Tony Sio, head of regulatory strategy and innovation at Nasdaq, stated: “By leveraging the latest innovations in cloud technology and artificial intelligence, we can better respond to new threats and provide the global financial system with advanced tools to more effectively combat market abuse.”
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