Nasdaq Personal Trading Account Management

Compliance officers today are responsible for monitoring trading not only at the firm-level, but also all employees working at company. Because employees working within a firm may be privy to material non-public information about companies being traded in the firm’s funds, there is significant reputational and regulatory risk associated with their personal trading activities. To protect firm reputation and bring greater clarity and context to compliance teams, we created Nasdaq Personal Account Surveillance.

Nasdaq Personal Account Surveillance is a compliance tool that interrogates employee personal account (PA) trading behavior for potentially suspicious activity. Leveraging a sophisticated proprietary price volatility model and pattern recognition algorithms, Nasdaq Personal Account Surveillance compares employee trading to firm trading activities and the market at large to identify trading ahead of significant market events or activities that could be classed as front running or post fund trading benefit. If the alert rules are met, a PA Dealing alert and case is generated in the Nasdaq Buy-side Compliance product for compliance teams to investigate.



  

CHALLENGE
Institutions and Individuals face greater accountability for market surveillance and conduct management, yet they mostly work with manual and slow processes that risk becoming obsolete in the face of regulatory pressure.
 
SOULTION
Nasdaq Personal Account Surveillance delivers the deeper, faster and unprecedented insight needed to identify unusual personal account trading behavior with higher levels of accuracy across the enterprise.
 
IMPACT
All personal account trades are scrutinized. As a result, there is a faster focus on high-risk traders and proactive management of report, and a greater response to regulators and firm reputation is maintained.




Key Benefits
Visibility into employee trading
Efficient identification of suspicious trading
Ability to demonstrate sophisticated controls to regulators and investors
Protection of firm against manipulative behavior


Rules for identifying suspicious activity in personal account trading
Trades beneficially (whether a buy or sell) before a significant price rise or fall;
Trades beneficially in front of subsequent Fund trades eg: PA buy followed by a Fund buy; or
Trades beneficially after a Fund trades eg: Fund buys and there is a subsequent PA sell

Nasdaq Acquires Sybenetix

The acquisition of Sybenetix further expands Nasdaq’s leadership in the surveillance space and makes it a leading provider to the buy-side industry.
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