Nasdaq to Enhance Global Market Surveillance Offering with Generative AI
Nasdaq to integrate Gen AI feature into its leading market surveillance technology for regulators and
marketplaces globally
AI functionality will improve overall quality and efficiency of market abuse investigations for our clients,
enhancing integrity of the financial system
During proof-of-concept testing, surveillance analysts estimated a 33% reduction in investigation time, with improved overall outcomes. This represents a substantial gain in investigation efficiency. Nasdaq is planning to leverage the generative AI enabled functionality for its
“Maintaining trust in capital markets is critical to preserving long-term growth and prosperity,” said
New AI Surveillance Capabilities
In an effort to ensure market integrity and trustworthiness, international regulators require financial institutions to demonstrate the ongoing effectiveness of their surveillance systems and controls. Firms are expected to have comprehensive coverage across their entire portfolio and operations, spanning a broad range of asset classes and jurisdictions, with scalable systems capable of managing increased levels of risk during periods of high volume and volatility.
Today, when analysts receive automated alerts of suspicious activity, they must conduct an initial review and form an assessment of whether the activity warrants further investigation. That typically involves manually collating all necessary evidence, including relevant trading activity and corporate filings alongside a vast array of data from external sources, before deciding whether to continue the review. The process is highly resource intensive, and even more so if the alert warrants further investigation.
Leveraging Amazon Bedrock, an AWS service for building secure generative AI applications, Nasdaq’s enhanced functionality will empower analysts with generative AI capabilities to distill, analyze, and interpret relevant information more quickly, enhancing their ability to form detailed initial assessments of alerts. For example, the technology can produce a consolidated table of the company’s regulatory filings, summaries and links to company, sector, and peer company news, news sentiment analysis, and other mitigating or aggravating factors that may impact any given security.
Nasdaq’s Expansion of AI Across Multiple Business Units
As a global technology provider, Nasdaq has continuously advanced AI capabilities to support capital markets, enhancing the integrity, fairness, liquidity, and efficiency of the financial ecosystem. This new generative AI functionality has been introduced as part of Nasdaq's broader research and development effort, focused on transparent, reliable, and accountable AI implementation across the financial services industry.
A major aspect of Nasdaq’s AI strategy has been to accelerate its market modernization effort by improving the quality of its data and surrounding systems while embracing cloud-enabled infrastructure. Nasdaq’s long-term approach to technology and investments has enabled the company to unlock the power of AI by scaling its capabilities, tools, and systems with proper governance, security, and oversight. To date, Nasdaq’s AI initiatives span many of its business units, including North American Markets Services, Financial Crime Management Technology, and Corporate Solutions.
Within North American Market Services, Nasdaq has launched Dynamic MELO, the first
About Nasdaq
Nasdaq (Nasdaq: NDAQ) is a leading global technology company serving corporate clients, investment managers, banks, brokers, and exchange operators as they navigate and interact with the global capital markets and the broader financial system. We aspire to deliver world-leading platforms that improve the liquidity, transparency, and integrity of the global economy. Our diverse offering of data, analytics, software, exchange capabilities, and client-centric services enables clients to optimize and execute their business vision with confidence. To learn more about the company, technology solutions, and career opportunities, visit us on LinkedIn, on X @Nasdaq, or at www.nasdaq.com.
Cautionary Note Regarding Forward-Looking Statements:
The matters described this press release contain forward-looking statements that are made under the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. When used in this press release, words such as “expect,” “enables,” “will,” “planning,” “can,” and similar expressions and any other statements that are not historical facts are intended to identify forward-looking statements. These statements include, but are not limited to, statements regarding Nasdaq’s AI powered feature within its Market Surveillance technology solution and other uses by Nasdaq of generative AI in its solutions and offerings. We caution that these statements are not guarantees of future performance. Actual results may differ materially from those expressed or implied in the forward-looking statements. Forward-looking statements involve a number of risks, uncertainties or other factors beyond Nasdaq’s control. These factors include, but are not limited to, factors detailed in Nasdaq’s Annual Report on Form 10-K and its other periodic reports filed with the U.S. Securities and Exchange Commission. We undertake no obligation to release any revisions to any forward-looking statements.
Media Contacts:
+1 646-637-3964
Emily.Pan@nasdaq.com
+44 (0)7443 100896
Andrew.Hughes@nasdaq.com
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