In a push to improve its range in generating behavioural analytics, NASDAQ, the global exchange operator, has upped the stakes by acquiring Sybenetix, which is a surveillance provider that combines behavioural analytics with expertise in financial markets.
The study of behavioural science has become very important in the field of buy-side compliance so that the detection and investigation of disorderly trading can be carried out quickly and corrective action can be taken. Through the acquisition of Sybenetix, Nasdaq looks to improve the overall efficiency of the trading system and provide a better experience for the traders.
Adena Friedman, President and CEO of Nasdaq, said: “Nasdaq is investing in the technologies, talent and capabilities that solve the complex challenges our clients face. 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.”
“As such, we are thrilled to welcome the talented technology team and clients from Sybenetix. Their bespoke compliance, surveillance and performance management technology can meet the needs of the world’s largest asset managers and will be complementary to Nasdaq’s Risk and Surveillance suite. This acquisition accelerates our offering to the buy-side and advances our ambitions to expand market integrity controls into all segments of the capital markets,” she added.
The technology systems of Nasdaq drive over 100 marketplaces all around the world. In many of these, compliance and the study of client behaviour is key to regulating trading, and are important for handling the huge variety of complex regulations that the trading industry has to adhere to.
Nasdaq has not revealed the acquisition price but has said that it will complete the acquisition with the cash that it has in hand. Nasdaq believes that it will make good returns on this investment.