**Nasdaq Unveils Advanced AI Enhancements to Market Surveillance Platform**
Nasdaq, Inc. has announced a series of significant enhancements to its market surveillance platform following the successful completion of a pilot that embedded advanced AI functionality throughout every stage of market abuse investigation.
The platform, already trusted by financial institutions worldwide—including 50 exchanges and 20 international regulators—offers cutting-edge capabilities that cover the entire investigation spectrum, from anomaly detection to regulatory enforcement.
**Addressing Sophisticated Market Manipulation**
“Manipulative actors are increasingly coordinating sophisticated schemes through indirect relationships that evade traditional detection methods, demanding equally sophisticated tools that can unmask hidden connections and advance at a faster rate than the threats we face,” said Edward Probst, Head of Regulatory Technology at Nasdaq.
With growing adoption of these enhanced functionalities, Nasdaq is uniquely positioned to leverage the collective strength of its client community in upholding the integrity of global capital markets.
**Challenges with Traditional Detection Methods**
As market manipulation schemes become more sophisticated across jurisdictions, reliance on manual detection processes has proven increasingly ineffective and labor-intensive.
Nasdaq’s new AI-driven detection capabilities utilize extensive industry and internal data sets to deliver comprehensive activity assessments and predictive analytics, dramatically improving detection accuracy while reducing false positives. This empowers market operators and participants to more precisely identify high-risk activities and instruments.
These added AI features build upon existing platform functionalities that streamline the triage and examination processes for suspected abuse cases, enabling global regulators to accelerate enforcement actions against market misconduct.
Nasdaq plans to roll out these enhancements to all market surveillance platform customers starting in Q4 2025.
**Transforming Market Abuse Detection, Analysis, and Regulatory Review**
During a strategic partnership with the Capital Markets Authority of Saudi Arabia, the pilot AI-powered anomaly detection tools were employed to identify unusual activity linked to predefined behavioral patterns.
The pilot achieved an 80% identification rate of pump-and-dump schemes using historical data—significantly outperforming traditional detection methods.
“We welcome the opportunity to partner with Nasdaq and demonstrate our relentless commitment to maintaining the trust and integrity of Saudi Arabia’s capital market,” said Saeed Ali Juraybi, Director of Market Surveillance and Analysis at the Capital Markets Authority of Saudi Arabia.
“The dramatic improvement in detection accuracy experienced during the pilot validates the transformative potential of these AI capabilities. Global capital markets face increasingly sophisticated, cross-border threats, and this technology represents a quantum leap in our ability to identify and combat market manipulation.
By working collectively to develop and enhance innovative new tools, we can stay ahead of emerging threats.”
**Tailored Surveillance Across Global Markets**
Nasdaq’s surveillance technology supports the world’s most comprehensive range of asset classes and market structures, connecting to vast data sets throughout the lifecycle of trades and subsequent review processes.
“Each market segment benefits from tailored multi-agent behaviors adapted to specific trading patterns and regulatory requirements,” explained Tony Sio, Head of Regulatory Strategy and Innovation at Nasdaq.
“The platform’s machine learning models continuously learn and adapt to new market conditions and manipulation tactics. This dynamic defense system equips market operators and regulators to stay one step ahead of sophisticated market abuse schemes.”
**Broad Commitment to Fighting Financial Crime**
As part of Nasdaq’s broader mission to combat financial crime, Nasdaq Verafin recently introduced the Agentic AI Workforce—a suite of digital workers designed to revolutionize the efficiency and effectiveness of financial institutions’ anti-money laundering (AML) programs.
Globally, Nasdaq’s technology serves 97% of systematically important banks, half of the world’s top 25 stock exchanges, 35 central banks and regulatory authorities, and over 3,800 clients across the financial services industry.
Leveraging deep industry experience, technological expertise, and cloud-managed services, Nasdaq continues to help financial services firms solve complex operational challenges while driving modernization across the industry.
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*Source: Nasdaq*
https://www.marketsmedia.com/nasdaq-embeds-ai-capabilities-in-surveillance-platform/
