Neurensic, a Chicago-based regtech artificial intelligence (AI) startup, has announced the release of its new SCORE surveillance platform, the trading industry’s first compliance solution powered by a cloud-based machine learning architecture which is able to identify complex patterns of trading behavior on a massive scale, across multiple markets in near real time.
The development of the new SCORE platform was led by David Widerhorn and Neurensic’s CTO, Dr Cliff Click, the inventor of the H2O artificial intelligence framework, the world’s fastest distributed machine learning architecture.
SCORE combines high-speed, big data processing power with self-adaptive pattern recognition technology, providing firms with a continuous assessment of the compliance risk associated with complex trading behaviours.
The firm’s recently completed beta release provided clients with surveillance technology for regulators, proprietary trading firms and futures commission merchants, culminating in engagements with larger institutional customers, including broker-dealers and global banks.
In the last year, Neurensic’s relationships with government and regulatory groups have grown, helping the firm enhance its surveillance capabilities via improved detection models.
Market Manipulation Recognition
SCORE showcases new features including the ability to recognise advanced market manipulation techniques beyond spoofing, such as ‘flipping’, ‘collapsing of layers’ and ‘vacuuming’.
David Widerhorn, CEO of Neurensic, commented: “Enforcement against disruptive trading continues to accelerate, and for the first time, prison sentences are a real possibility. With more than 80% of stock trading performed by high-speed computer algorithms, disruptive trading practices such as spoofing, layering and messaging have become a major issue in the capital markets. We now have the opportunity to help our customers gain a better understanding of regulatory risk by identifying trading strategies that closely resemble known illegal behaviors.”
Neurensic’s product offerings protect firms and individuals who can be held personally liable for disruptive trading violations, ensuring that they stay compliant with exchange trading rules and regulatory mandates.
By automating the data integration and detection configuration process, SCORE has also streamlined the surveillance deployment experience allowing organisations to get up and running quickly with improved surveillance coverage.