Nasdaq has launched an AI-powered feature within its market surveillance technology system to enhance the way market abuse investigations are conducted by ensuring efficient monitoring across various regulatory jurisdictions and marketplaces worldwide.

Market Surveillance with AI

This integration of generative AI aims to streamline the process of investigating suspected market manipulation and insider trading, enabling regulators and marketplace clients to effectively uphold the integrity of financial systems.

Ed Probst, the Senior Vice President and Head of Regulatory Technology at Nasdaq, mentioned: "Maintaining trust in capital markets is critical to preserving long-term growth and prosperity. Market abuse is a substantial global challenge and one that demands increasingly sophisticated solutions to address it."

"As a major regulatory technology provider to the world's financial system, with a deep culture of innovation, Nasdaq is uniquely placed to leverage the power of technology to further enhance the tools and capabilities necessary to uphold the integrity of marketplaces globally."

The new platform reportedly reduces investigation time by 33% and improves outcomes. According to Nasdaq, this efficiency marks a significant advancement in market surveillance capabilities, boosting the effectiveness of regulatory oversight and enforcement measures.

The new offering also enables users to analyze and interpret vast amounts of relevant information, facilitating detailed initial assessments of suspicious activity alerts. By automating tasks that were previously resource-intensive, analysts can focus their expertise on critical decision-making processes, thereby enhancing the speed and accuracy of market abuse investigations.

Expanding AI Initiatives

Nasdaq's AI strategy extends beyond market surveillance, encompassing various business units such as North American Market Services, Financial Crime Management Technology, and Corporate Solutions. By tapping into the potential of AI across its diverse offerings, Nasdaq aims to optimize client outcomes and drive innovation within the global financial ecosystem.

Meanwhile, Nasdaq's net revenues jumped to $3.9 billion in 2023, marking a 9% increase from the previous year. The exchange operator experienced a staggering 23% surge in net revenues compared to the same period in 2022, totaling $1.1 billion.

A key contributor to Nasdaq's revenue growth was its Solutions segment, which experienced a remarkable 13% annual increase in revenues. The platform recorded an even more extraordinary surge in solutions revenues, soaring by 32%.