Using superior data management facilities, SMARTS builds an understanding of the "normal" market behaviour so that alert algorithms can be created to identify "abnormal" behaviour. These help detect market behaviour which may have an adverse effect on market integrity. Because identification and analysis of suspicious trading occurs in realtime, a rapid response from surveillance departments using SMARTS is easily achieved.
SMARTS will be provided through the obSurveX service provided by the Oslo Børs. The obSurveX concept comprises a combination of supply and operation of the SMARTS system together with the provision of expertise in market surveillance and specialised surveillance services. SMARTS is already used throughout Scandinavia, including the markets of Oslo, Copenhagen and Stockholm through obSurveX. Last March, the Iceland Stock Exchange (ICEX) also began using SMARTS.
Commenting on the engagement of Computershare, Peter Jessup, Managing Director of Computershare Markets Technology said:
“We are extremely pleased that Helsinki has chosen to rely on Computershare Markets Technology as they grow and expand their business. Consistent with our other exchange products, SMARTS is the most innovative and sophisticated technology in its field. The proven ability to promote a market’s efficiency and fairness, to operate in both cash and derivative markets, and to lower long-run costs for exchanges are the reasons that our technology has been implemented across the Nordic region over the last seven years.”
Thomas Jones, CEO of SMARTS Europe said:
“Helsinki has joined the four exchanges of the Norex alliance in a formal surveillance alliance, and they have also joined 13 other exchanges and regulators in an informal global surveillance alliance: the other SMARTS users around the world. The members of this informal alliance obviously benefit from sharing the software, and also from events such as our upcoming conference in Stockholm in mid 2005.”
As trading volumes continue their long and steady increasing trend in both small and large markets, SMARTS has proven its ability to not only cope but improve surveillance operations.
With the assistance of SMARTS research staff, Oslo Børs has already established a centre of expertise for market surveillance for both cash and derivative markets. Each participating exchange is responsible for the operation of its own market surveillance function, whereas the expertise centre is principally involved in developing surveillance alarms and systems production. Through extensive experience and training, the centre also contributes to improving the market surveillance expertise of all the exchanges that use obSurveX.
Sverre Lilleng, Head of Market Surveillance at Oslo Børs and the Chairman of the obSurveX Committee said:
“This will make cooperation between the Nordic exchanges, harmonisation and cross-border surveillance far easier”
The SMARTS surveillance system is supplied exclusively by Computershare Markets Technology as part of its suite of high performance and multi-market software products that automate the functions of exchanges. SMARTS is developed by Sydney based SMARTS Pty Ltd and is supported by R&D in collaboration with the world’s largest research centre devoted exclusively to market surveillance, the Capital Markets Cooperative Research Centre, also based in Sydney.
This announcement comes just weeks after the Australian Stock Exchange began live operation of SMARTS for the surveillance operations in mid September this year.