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A major Broker Dealer approached Psydex about applying Psydex AG's advanced analytic capabilities to commodity, stock and news feeds to satisfy requirements of regulatory agencies, including Financial Industry Regulatory Authority (FINRA).
FINRA rules require all broker-dealers to design and implement programs to detect and report suspicious transactions at, by or through the firm.
Many new regulations are being imposed, such as, the recent FINRA guidance via Regulatory Notice 10-06 requiring that firms maintain records of all communications made via Blogs and Social Media Sites, such as Facebook, Twitter, LinkedIn, etc.
Psydex AG's unique ability to fuse news, social media, and market data and backtest gives this broker dealer a platform to solve many of today's regulatory needs, as well as a robust and scalable platform for addressing future regulation.
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A solution was implemented that uses Psydex AG to fuse market data via feeds from major exchanges to analyze trades and correlates trades with news and market moving information disseminated via major News wires, Television, Social Media, Blogs and proprietary sources.
The solution leverages Complex Event Processing (CEP) to identify suspicious trades when compared to configurable metrics, such as VWAP, where deviations occur ahead of unscheduled news releases.
These trades are identified and can be further investigated with market participants and regulators.
Prior to the solution, this process was very time consuming and costly to perform - resulting in exposure to the firm that often resulted in fines imposed by regulatory agencies.
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Information Aggregation
Psydex AG fuses content from multiple News Wires, Television, Social Media, Blogs and proprietary information sources.
Custom Portfolios
Psydex AG provided the Broker Dealer a pre-loaded system with Public Traded Companies, Industries, Sectors, and Tradable Themes pre-populated, as well as the ability to modify and create alerts and organize portfolios specific to their clients.
Monitoring and Alerts
Psydex AG provides the Broker Dealer with a mechanism to actively monitor and receive alerts when any stock traded with the broker dealer appears to be suspicious.
Integration
Psydex AG provides the Broker Dealer with a set of API(s) which make it easy to integrate in to existing proprietary systems and processes.
Usability
A custom version of Psydex AG Dashboard and Messenger provides the Broker Dealer with an advanced Client that makes it easy to filter out the noise and get information efficiently, as well as delivery of alerts and information snippets via Instant Messaging (IM), SMS and E-Mail.
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