Smarts, a provider of market surveillance systems and services, has extended its Smarts.broker product with coverage for Futures Commission Merchants (FMCs), Introducing Brokers (IBs) and other market participants who trade in the CME Group markets. The new product provides surveillance services across all futures and options instruments.
Smarts.broker service automates identification and enhances the investigation of prohibited trading activities on futures markets. Delivered via a managed service, Smarts.broker streamlines tasks such as monitoring for wash trades and crossings that violate individual CME, CBOT, NYMEX and COMEX market rules.
The platform also identifies complex scenarios such as front running and market manipulation in the form of market dominance, churning, entry and deletion of large orders with the intention of misleading the market, and the manipulation of settlement prices.
Smarts.broker for the CME Group markets incorporates the latest regulatory changes, has trade-by-trade and quote-by-quote market visualizations, with filtering at house, account and trader level to highlight unusual patterns of trading. It has the ability to link instruments in multiple markets, including options and spread strategy instruments against underlying contracts and provides comprehensive coverage of all futures markets.
Andreas Furche, CEO of Smarts Group, said: “As one of the most diverse derivatives marketplaces, the CME Group markets are extremely complex and data intensive. This presented a large development challenge with Smarts monitoring more than three million trades a day across 300,000 instruments. Smarts has tailored the alerts for this unique market ensuring that the system is able to detect even the most subtle of prohibited trading behavior.
“With increased regulatory pressure on futures and derivatives markets in general, the Smarts offering provides Futures Commission Merchants (FCMs), Introducing Brokers (IBs) and other market participants with an extremely cost effective and valuable tool to monitor trading activity and comply with exchange rules and market regulations.”