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
CUSTOMER STORY
Big 4 Australian bank tackles financial fraud with an integrated surveillance solution
KX enables big 4 bank to reduce its exposure to financial fraud by implementing KX Surveillance to help monitor its trade and E-Comms financial data.
Find Out More
CUSTOMER STORY
Canadian Security Regulator innovates to support market integrity with KX
KX delivers on demand robust market surveillance solution that aggregates data from any stock exchange across the Canadian financial markets.
Find Out MoreFEATURED 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
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.
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.
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.
RELATED RESOURCES
Interested in trying a KX Surveillance demo?
AMERICAS
Tel: +1 (212) 447 6700
EMEA
Tel: +44 (0)28 3025 2242
APAC
Tel: +65 65921960
ANZ
Tel: +61 (0)2 9236 5700