Nasdaq and Digital Reasoning Team Up to Foster NLP-Driven Surveillance

Nasdaq and Digital Reasoning will deliver a singular interface of trade surveillance alerts with natural language processing.

Nasdaq (Nasdaq:NDAQ) and Digital Reasoning, a provider of cognitive computing solutions, have announced a new partnership that fosters an offering of holistic surveillance technology across global capital markets, according to a Nasdaq statement.

The new partnership between the two entities will expand holistic surveillance technology to a multitude of buy-side participants, as well as brokers, regulators, and exchanges. Moreover, Digital Reasoning will lean on its electronic communications (eComms) monitoring, a solution that helps monitor and investigate employee communications via machine learning technology. By extension, Nasdaq will be bringing its own area of specialty to the table, in the form of its SMARTS Surveillance solutions capabilities.

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Subsequently, both Nasdaq and Digital Reasoning will help deliver a consolidated approach and single interface of trade surveillance alerts with natural language processing and machine intelligence-based technology. The partnership is influential for many market participants namely as surveillance analysts will be able to leverage insights across several communications and trade data mediums, with the ultimate aim of prioritizing areas for evaluation for potential rapid investigations.

According to Valerie Bannert-Thurner, Head of Risk & Surveillance Solutions, Nasdaq, in a recent statement on the strategic partnership: “Digital Reasoning is a true disruptor in the financial technology space.”

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“Our partnership with Digital Reasoning will not only enable us to strengthen our current surveillance solution but also allow us to utilize the best capabilities and data sourced from each product to deliver monitoring technology that will allow firms to take a truly holistic approach to surveillance across structured and unstructured data and strengthen their monitoring and detection capabilities,” she added.

“The application of machine intelligence to identify inappropriate activity in digital communications greatly boosts positive predictive values over traditional methods, and it brings a radical new technological approach to the field of behavior analysis,” added Marten den Haring, Chief Product Officer, Digital Reasoning, in an accompanying statement.

“As an existing user of both vendors, the strategic agreement between Nasdaq and Digital Reasoning presents an exciting development across the UBS market surveillance tool set. By combining existing trade surveillance alerting with communications data, it should quickly and holistically provide the surveillance analyst with specific electronic communications associated with potential market manipulation and/or conduct risk issues,” commented Kirsty Everett, Global Head of Monitoring & Oversight at UBS.

Nasdaq made headlines last week after it entered into a definitive agreement to acquire Marketwired, a worldwide provider of news distribution services and analytics in its latest merger and acquisition move.


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