Trade surveillance

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State-of-the-art insider trading detection solution offers AI-based stock exchange market surveillance 

When it comes to market abuse, our clients’ most frequently voiced request is:
“We are looking for a comprehensive AI-driven trade surveillance approach and alert system that will allow us to swiftly and safely identify abnormal signals from the market that indicate market abuse.” 

The insider trading detection solution has been developed by a trade surveillance unit in partnership with PwC Switzerland to meet these needs. It is based on a unique value proposition to offer data and analytics combined with financial market expertise in order to improve the target organisation’s effectiveness and efficiency. 

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Why?

Most trade surveillance teams use run-of-the-mill market surveillance products whose main focus is primarily on quantitative alert generation. This method generates a high volume of false positive alerts, which results in a quite ineffective surveillance. The use of the latest technologies should allow a clear, systemic focus on higher-quality alerts. This will allow trade surveillance specialists to concentrate even more on the accurate investigations in order to generate real added value.


How?

PwC Switzerland in partnership with a Swiss stock exchange has developed an integrated solution for the detection of insider trading, in line with the requirements of the regulator to cover both aspects of effectiveness and efficiency:

  • effectiveness was achieved by means of the newly developed AI-driven alert engine - it generates more true positive alerts for the user to review and investigate, and relieves the user from investigating a series of false positive alerts;
  • efficiency was achieved by implementing a state-of-the-art work flow case manager software that allows the user to interact with the organisation’s processes while building a dedicated front-end platform to visualise, analyse, and gain interpretable insights into the insider trading detection pipeline for further investigatory analysis or ad-hoc requests.

What?

This integrated solution covers both elements of what an organisation needs in today’s market surveillance business: effectiveness and efficiency. It can be implemented in any organisation that requires support in trade surveillance in a modular or scalable way by:

  • designing a custom AI-based detection approach to any kind of fraud or abuse;   
  • developing an investigation support tool allowing your organisation to perform efficient in-depth analyses of any red flags, and gain interpretability insights;
  • boosting your business process efficiency by linking processes to a workflow solution for a holistic and transparent view of your organisation’s tasks.

“Our state-of-the-art solution combines various advanced AI-based approaches to pinpoint specific market abuse patterns with reliable accuracy.”

Statement by a Swiss financial service provider

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Contact us

Peter Kasahara

Peter Kasahara

Managing Partner Digital Intelligence and Customer Centric Transformation, PwC Switzerland

Tel: +41 58 792 42 15

Dr. Marcel Tschanz

Dr. Marcel Tschanz

Partner Advisory, PwC Switzerland

Tel: +41 58 792 20 87

Angela Carpintieri

Angela Carpintieri

Advisory Director, Data and analytics, PwC Switzerland

Tel: +41 58 792 16 20

Martin Flisek

Martin Flisek

Advisory, PwC Switzerland

Tel: +41 58 792 4490

Christian   Blakely

Christian Blakely

Head of Machine Learning and AI, PwC Switzerland

Tel: +41 58 792 22 81