The IEX Group has integrated First Derivatives’ Delta software platform to provide trade surveillance and analytics for its equity trading operations in an effort to help curb market abuse and illicit practices.
First Derivatives is a software and service provider for the capital markets industry, helping to provide financial firms with a multitude of services. In particular, the Delta software program allows operators to better monitor its trading traffic and analytics, which is instrumental in allaying potential market abuse that seems to have permeated the fabric of the financial services industry in 2014.
The Delta Surveillance platform is utilized by exchanges, regulators and brokers to detect acute trading anomalies that often signal prohibited trading practices or unusual activity across a variety of asset classes.
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According to Gerry Buggy, Executive at First Derivatives, in a recent statement on the partnership, “Over the past decade First Derivatives has worked with electronic trading platforms to help them meet the challenge of managing rapid growth in US market data volumes. That experience, combined with our global surveillance teams’ domain knowledge, has proved to be a powerful combination. IEX sought a solution that offered the performance associated with high-speed trading environments and the flexibility to adapt as their business and regulatory requirements grow. These are two of the core strengths of Delta, which we look forward to delivering for IEX.”
“As a market center that set out to become a critical part of the U.S. National Market System, we recognized the need and responsibility to maintain a fair and orderly trading environment for all of our participants. We wanted a surveillance system that had the ability to run sophisticated alerts designed to monitor and preserve IEX market integrity and orderly trading while allowing us to quickly identify and adapt whenever potentially suspicious patterns emerged. We also wanted a system that could easily integrate with the IEX architecture and could scale to handle the increasing data volumes of the future. In addition to the surveillance function, Delta immediately strengthens our visual analytics capabilities and our ability to provide value-added data services for our clients,” added John Schwall, Chief Operating Officer and Co-Founder of IEX, in an accompanying statement.
Brian Conlon, CEO of First Derivatives, commented: “We are pleased with IEX’s decision to select Delta as its platform for market surveillance. IEX, as a new entrant into the market, had the entire range of competing solutions to select from. Their choice of Delta reinforces our view that the solution is ideally suited to manage the surveillance needs of the future.”