Shanghai Futures Exchange Launches Nasdaq's SMARTS for Market Surveillance

Nasdaq announced today that Shanghai Futures Exchange Exchange An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv An exchange is known as a marketplace that supports the trading of derivatives, commodities, securities, and other financial instruments.Generally, an exchange is accessible through a digital platform or sometimes at a tangible address where investors organize to perform trading. Among the chief responsibilities of an exchange would be to uphold honest and fair-trading practices. These are instrumental in making sure that the distribution of supported security rates on that exchange are effectiv Read this Term (SHFE) has launched a new market surveillance platform powered by SMARTS, Nasdaq’s flagship surveillance solution, in the second contract of its kind in recent months.

Back in August, Finance Magnates reported that Nasdaq had extended its ongoing partnership with BM&FBOVESPA’s which also saw the deployment of its SMARTS Market Surveillance platform across Brazil’s Equities Equities Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa Equities can be characterized as stocks or shares in a company that investors can buy or sell. When you buy a stock, you are in essence buying an equity, becoming a partial owner of shares in a specific company or fund.However, equities do not pay a fixed interest rate, and as such are not considered guaranteed income. As such, equity markets are often associated with risk.When a company issues bonds, it’s taking loans from buyers. When a company offers shares, on the other hand, it’s selling pa Read this Term, commodities and futures markets.

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SHFE's new system processes large volumes of market information in real-time for SHFE to detect anomalies and also includes tools that allow analysts to make sense of the vast amounts of data for investigative purposes.

Commenting on the launch, Ulf Carlsson, Vice President and Regional Manager of North Asia and Japan, Nasdaq, said: “We are truly honored to be working with Shanghai Futures Exchange on their market surveillance efforts and believe that our partnership underscores the exchange’s commitment to maintaining the integrity and transparency of their marketplace”.

As the Chinese exchange continues to expand its global footprint there is a need for market monitoring capabilities that are scalable and match this growth and Nasdaq’s technology is proven in the surveillance space.

According to Tony Sio, Head of Exchange & Regulator Surveillance, Market Technology, Nasdaq: “Markets globally have become increasingly sophisticated, and we continuously develop new technology to allow exchanges to monitor this activity.”

“By taking in vast quantities of market events at the lowest level of detail, the tools build advanced models of the overall market as well as each participant's behavior. Collaborating closely with SHFE, we have been able to incorporate the unique characteristics of a Chinese exchange into the solution. Market integrity is core to effective marketplaces and it is a privilege to be able to assist SHFE as the exchange evolves and grows.”

SMARTS Surveillance solutions currently power monitoring for over 120 market participants, 45 exchanges and 13 regulators globally.