Trade Surveillance - KX
PRODUCTS | SURVEILLANCE

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Integrated trade surveillance and e-comms monitoring for more effective market abuse protection.

Trade Surveillance - KX

Today’s always on modern banking environment needs integrated trade surveillance and e-comms monitoring for more effective market abuse detection. Trade surveillance is still a constant challenge for global financial institutions, despite the millions of dollars being spent on off-the-shelf solutions. Banks are still struggling to meet the compliance expectations of the regulator and stop trading malfeasance.

Real-time surveillance and compliance solutions for a better, safer digital customer experience.

This demands a unique type of surveillance platform which can meet the needs of a modern banking environment. Financial institutions need a solution to pinpoint every risk and opportunity in microseconds, not in isolation or after the fact, but in real-time, through every step and every facet of a bank’s data and trading operations. Built-in the most demanding data environments, KX Surveillance provides a robust solution to detect market abuse, prevent market manipulation and support all your trade surveillance and compliance needs.

BUSINESS BENEFITS

IN TODAY’S SUPER-FAST DATA-DRIVEN FINANCIAL INDUSTRY, RISKS CAN COME – AND OPPORTUNITIES CAN GO, OFTEN IN MOMENTS.

Deliver continuous, actionable intelligence

Identify anomalies and arm stakeholders with micro-second intelligence by analyzing, in real-time, billions of transactions from every line of business and payment channel, utilizing human intervention, robotics, automation, AI, ML, and NLP strategies.

Enjoy a holistic view of customer behavior

Build and deliver a single, 360-degree understanding of customer behavior for a real-time view of risk by continuously monitoring multiple lines of engagement – across your entire portfolio of products and services, payment channels, and endpoints.

Build a culture of data-driven opportunity

Use clear, actionable intelligence for better-informed decisions, building a complete, historical, data-driven single-source-of-truth that’s updated in real-time, and enables the culture of financial vigilance, risk aversion, and opportunity awareness.

Deliver continuous, actionable intelligence

Identify anomalies and arm stakeholders with micro-second intelligence by analyzing, in real-time, billions of transactions from every line of business and payment channel, utilizing human intervention, robotics, automation, AI, ML, and NLP strategies.

Enjoy a holistic view of customer behavior

Build and deliver a single, 360-degree understanding of customer behavior for a real-time view of risk by continuously monitoring multiple lines of engagement – across your entire portfolio of products and services, payment channels, and endpoints.

Build a culture of data-driven opportunity

Use clear, actionable intelligence for better-informed decisions, building a complete, historical, data-driven single-source-of-truth that’s updated in real-time, and enables the culture of financial vigilance, risk aversion, and opportunity awareness.

KX Surveillance enables financial institutions to instantly detect known trading violations like layering, spoofing, or marking the close. Customers can calibrate their parameters in real-time to improve their detection quality and accuracy. The flexibility of the historical database and replay engine eases retrospective investigation for new types of fraudulent behavior and suspicious activity.

 

Why KX Surveillance is the Solution to Stop Market Abuse

KX for Surveillance is a complete integrated solution that enables you to effectively identify potential malfeasance, market disruption, or unfair trading practices. Developed in the toughest trading environments, KX Surveillance provides:

  • Complete behavioral analysis across multiple dimensions to identify potential rogue trading patterns.
  • Dynamic thresholds which reduce false positives and investigation costs by adapting to the changing characteristics of today’s financial markets, as well as your appetite for risk.
  • Real-time data analysis to identify behavioral outliers that could indicate potential malfeasance and compare trends across multiple factors, such as trade alerts, profit & loss, and eComm alerts.
  • Continuous detection of actions and events across all trading activities.
  • T+1 detection of all market manipulation and trading risks in real-time so you can detect anomalies quickly and act with confidence.

CUSTOMER STORIES

LEARN HOW FINANCIAL ORGANIZATIONS REDUCE THE RISK OF MARKET ABUSE AND MAINTAIN REGULATORY COMPLIANCE USING KX SURVEILLANCE

FEATURED RESOURCES

READ THE EBOOK SAFETY IN NUMBERS AND THE POINT OF VIEW PAPER, NO SECOND CHANCES TO LEARN MORE ABOUT KX SURVEILLANCE

Safety in Numbers: Real-time, Contextual Surveillance

The financial services arena has never been subject to more volatility and criminality, or more competitive than it is today. Changing consumer behavior is accelerating data growth but the opportunity to extract actionable insight can very often come down to perishable micro-moments.

 
This eBook explores the

  • risks of more endpoints and complexity
  • need to consolidate unstructured data and identify intent
  • benefits of real-time surveillance
Read eBook

No Second Chances. KX Surveillance Point of View Paper

Charles Gregory. VP Product Management for Surveillance Solutions discusses the risk and compliance impacts of an increasingly connected society, where customer behavior is driving change, and the explosion in data volumes and threat vectors is placing financial organizations under challenging new pressures.

Read Point of View Paper

INTEGRATED TRADE & E-COMMS SURVEILLANCE

Traditional black-box based compliance has had limited success in detecting fraud because its focus is too restrictive.

While individual transactional analysis is important, contextual analysis needs to survey a wider spectrum. It’s now accepted that detection is not just about individual systems and trades, it’s not just about fixed limits and parameters, it’s not just about siloed reports and audit trails – it’s about all the interactions, dependencies, changes, communications, patterns and behaviors across the trade lifecycle and the organization, that standalone alerts and static rules simply don’t catch. While many solutions focus on specific siloed aspects of data analysis (e.g. trade, voice, email), until now there has been no solution that can give true multi-factorial analysis across them all. KX Surveillance is that solution.

01

Transactional and E-Comms monitoring

TRANSACTIONAL AND E-COMMS MONITORING INTEGRATED

Captures and analyzes massive amounts of information including but not limited to trades, quotes, orders, and market data, together with E-Comms and payments for Anti-money laundering (AML) monitoring – all on a single platform.

02

Multifactorial
modelling

MULTIFACTORIAL MODELLING

Choose from hundreds of risk factors to build risk profiles and behavioral anomalies.

03

Incorporation
of machine
learning

INCORPORATION OF MACHINE LEARNING

Apply all major ML libraries for supervised and unsupervised learning.

04

Rich contextual
investigation

RICH CONTEXTUAL INVESTIGATION

Bring to life investigations with dashboards and ad-hoc data mining.

05

Workflow and
extensible open
platform

WORKFLOW AND EXTENSIBLE OPEN PLATFORM

Extensive case management with an open platform for data modelling and investigation.

Key Features

KX provides 5 key features to support your real-time compliance and surveillance strategy.

Key Features

KX provides 5 key features to support your real-time compliance and surveillance strategy.

01

Transactional and E-Comms monitoring

TRANSACTIONAL AND E-COMMS MONITORING INTEGRATED

Captures and analyzes massive amounts of information including but not limited to trades, quotes, orders, and market data, together with E-Comms and payments for Anti-money laundering (AML) monitoring – all on a single platform.

02

Multifactorial
modelling

MULTIFACTORIAL MODELLING

Choose from hundreds of risk factors to build risk profiles and behavioral anomalies.

03

Incorporation
of machine
learning

INCORPORATION OF MACHINE LEARNING

Apply all major ML libraries for supervised and unsupervised learning.

04

Rich contextual
investigation

RICH CONTEXTUAL INVESTIGATION

Bring to life investigations with dashboards and ad-hoc data mining.

05

Workflow and
extensible open
platform

WORKFLOW AND EXTENSIBLE OPEN PLATFORM

Extensive case management with an open platform for data modelling and investigation.

Consolidated Surveillance and Supervision

By scanning third-party data for users’ unknown behaviours, aggregating data across multiple sources and disparate formats, optimizing your process with automated risk analytics and transforming assumption into hard facts and figures. KX enables contextual analysis, workflow, audit and transparency that not only ensures regulatory compliance, but also delivers massive operational savings through fewer false positives and efficiency in ensuring risk controls are met.

Comprehensive E-Comms Surveillance

KX’s flexible infrastructure allows for broad capture of structured and unstructured data across, emails, chat applications (Reuters, Skype, Teams, Slack), online forums (Reddit), and voice. When coupled with trades, news, and other transactional activity, provide context and deeper insights into potentially suspicious activity that regulators now expect organizations to include in their oversight. This integrated approach allows for a unified end-to-end monitoring to mitigate risk and manage compliance demands.

Machine Learning Methodologies and Techniques

ML techniques are changing the surveillance methodology from being lag-indicator driven to lead-indicator driven where the focus is detection of intent and threat avoidance, rather than conviction when the financial and reputational damage has already been done. Machine Learning techniques like Natural Language Processing (NLP) can be used in the investigation phases to parse documents, texts and other comms to uncover suspicious activity and assist a prosecution by providing corroborating evidence.

ADDITIONAL ADVANTAGES

KX PROVIDES THE FOLLOWING ADDITIONAL ADVANTAGES TO SUPPORT YOUR RISK MANAGEMENT AND COMPLIANCE STRATEGY

Dynamic Alerts Framework

Alerts Framework is a powerful and highly flexible engine using both real-time and historical data. Alerts are generated by analyzing events using out of the box or user defined models with configurable parameters. The Benchmark Framework automatically updates parameters within certain alert scenarios based upon region, product, trader, significantly reducing the operational overhead of configuring for different markets or regions.

Broad Regulatory Coverage

KX scenarios have been tested and proven over many years in some of the most challenging compliance environments. The extensive library of scenarios prepares organizations against potential cases of market abuse, insider trading, and broader financial crime before they happen.

Case Management

KX has a flexible workflow tool to cater to your organization’s
surveillance business processes. This case management framework allows clients to easily customize their alerts and case management workflows, capturing additional key information such as emails, announcements or any other relevant files.

Backtesting and Market Replay

Regulators and bank compliance departments are dealing with ever increasing volumes of complex trading data which makes identifying anomalies difficult. With KX it is possible to backtest many years of trading data to efficiently calibrate scenarios and identify irregular behavior, minimizing false positives.

Learn More
Multi Asset and Multi Market

The KX platform captures and consolidates all trading data (rates, trades, orders, news) for FX, credit, rates, commodities, equities and listed derivatives. Built on technology chosen by top global banks for their high frequency trading systems, KX Surveillance was designed in collaboration with market participants to give analysts and business users a comprehensive view of relevant market activity.

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