Eventus Systems announced that it has integrated machine learning (ML) into its Validus surveillance and risk software platform, augmenting capabilities for identifying potential disruptive trading practices such as spoofing and layering.
Eventus Systems is a regtech software firm with capital markets clients, including tier 1 banks, brokerages and FCMs, proprietary trading firms, exchanges, corporates and buy-side firms. The Validus surveillance and risk software platform – available as a cloud-based or real-time enterprise on-premise solution – provides risk management and surveillance across equities, equity options, futures and cryptocurrencies.
The platform identifies and monitors any potentially suspicious or risky trading behavior, as well as creates alerts and intelligent resolution based on parameters identified by compliance, risk management, trading desks and operations personnel.
The machine learning technology can further hone the parameters automatically without requiring user input, enhancing the quality of alerts and reducing already stretched resources.
Eventus CEO Travis Schwab said in a statement: “Overall, it’s about applying the right technology for the surveillance job at hand. Some procedures, such as Wash Trades or Order Marking, would not be productive by employing ML technologies. This is why we make sure and apply these technologies to problems that can benefit from their unique advantages.”
The firm kicked off this project several months ago by first conducting extensive supervised learning on existing scored data sets. As more and more customers upgrade to the new software, they can score their own results, which creates continuous improvement in the learning process.
Rapid expansion is expected on the use cases for applying machine learning approaches now that the data and infrastructure is in place.