Underdog has deployed Eventus’ Validus platform across its prediction markets, adding third-party trade surveillance already used by traditional exchanges, futures firms and broker-dealers.
London's trading industry is coming home!
The integration follows similar deployments by other regulated event-contract venues as prediction-market operators add systems that flag potentially abusive trading and record how compliance teams investigate alerts.
Validus surveillance procedures are already active across Underdog’s markets, according to Eventus’ announcement. Underdog is also expanding the range of functions it uses, although the companies did not provide a timetable.
Alerts Can Be Adapted to Underdog’s Markets
Validus processes orders, executions and participant behaviour, generating alerts for compliance teams to review when trading patterns may indicate manipulation or other rule breaches.
Underdog can configure those alerts for its own products and adjust them as markets and trading patterns change. The company also cited Eventus’ automation and machine-learning tools, but neither party disclosed which of those functions are already running.
Underdog Exchange is using the system, which began operating in July after the company acquired CFTC-registered designated contract market and derivatives clearing organisation entities in March.
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Underdog wholly owns the exchange, which offers contracts covering sports, culture and other event categories through the existing Underdog app.
Eventus also provides surveillance technology across equities, futures, options, FX and fixed income. Its clients include exchanges, futures commission merchants, broker-dealers and proprietary trading firms.
External Surveillance Spreads across Event Exchanges
Rothera deployed Validus earlier this year to monitor thousands of contracts across its fully collateralised and margined products. Novig has also adopted the platform, while Kalshi has added external surveillance technology from Solidus Labs.
These systems screen trading activity, send alerts to compliance staff and preserve records of how potential breaches were investigated. They apply surveillance practices already common at regulated derivatives venues to event-contract trading.
Eventus and Underdog did not disclose the value of their agreement, the number of markets monitored or the specific alert models currently enabled.
