Nasdaq Buy-Side Compliance

provides trade surveillance & global regulatory compliance.

This Solution Helps

  • Asset Managers
  • Hedge Funds
  • Investment Managers
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Cross-asset class coverage, protecting firms from manipulative behaviors such as insider trading, market manipulation, and breach of fiduciary duties.

    Built specifically for asset managers and hedge funds, Nasdaq Buy-side Compliance is a trade surveillance and case management solution designed to help buy-side firms comply with global regulatory requirements such as Market Abuse Regulation (MAR), MiFID II, Senior Managers Regime, and Securities and Exchange Commission (SEC) mandates. The award-winning technology uses behavioral science to detect manipulative behaviors such as insider trading, front-running, market manipulation, and more.

    Using a behavioral profiling algorithms, Nasdaq Buy-side Compliance automates the testing process by identifying trading patterns outside of individual benchmarks, flagging suspicious or unusual investment and trading activities more accurately and effectively. This reduces the amount of time compliance teams spend on investigating false positives, saving time and improving workflow efficiencies.

    • Behavioral and Trading Heatscore that instantly identifies outlying trading patterns against individual benchmarks as well as the company at large, drastically reducing false positives and prioritizing risk alerts. 
    • Comprehensive reporting to optimize the investigation process with clear, configurable reports for regulatory readiness, and robust case management, with full audit trail, to consolidate data into a centralized stream
    • Video replay that aggregates trade transactions, holdings, asset under management, market data, financial news, and other data points to instantly replay trades at the point of activity

    Behavioral Analytics

    Using behavioral science, Nasdaq Buy-side Compliance analyzes the investment and trading patterns of each portfolio manager and assigns each trade a behavioral heatscore, helping compliance teams quickly identify potentially abusive behaviors.

    Each trade is assigned a behavioral heatscore, which compares trading patterns to the ‘normal’ pattern of each portfolio manager, instantly identifying outlying behaviors against individual benchmarks.The behavioral heatscore identifies rogue trading patterns against an individual fingerprint, alerting compliance teams to cases that warrant investigation. By investigating each trade and assigning behaviors a heatscore, compliance officers are able to reduce the amount of time they spend looking into alerts, drastically reducing false positives.

    Personal Account Surveillance

    Leveraging a price volatility model & pattern recognition algorithms, the additional module compares employee personal trading activity to the market at large to identify trading ahead of significant market events or activities.

    - Visibility into employee trading activity

    - Efficient identification of suspicious trading

    - Ability to demonstrate sophisticated controls to regulators & investors

    - Protection of firm against manipulative behavior such as front-running or tailgating scenarios

    Why do you need an automated surveillance & compliance solution?

    Compliance with Regulatory guidelines

    Regulatory bodies have increased scrutiny on buy-side firms including costly fines and use of hi-tech data analytics engine. Have confidence that all regulatory requirements are being met, including MiFID II, MAR, SMR, and SEC mandates with surveillance technology to analyze data and improve regulatory management.

    Increase Operational Efficiencies

    Significant false positive reduction enables compliance teams to immediately flag and prioritize which alerts pose the most risk and investigate accordingly, saving time, and improving resource allocation.

    Investor Confidence

    Provide transparency to differentiate, win, and retain clients, whilst lowering operational costs and provide value-add to the investors, instilling greater confidence.

    Have a question? Contact our team!

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    Resource Center

    • Nasdaq Buy-side Compliance Factsheet

      Factsheet

      Nasdaq Buy-side Compliance Factsheet

      Learn more about the key benefits and unique features of Nasdaq Buy-side Compliance

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    • Behind the Fine: The Downfall of Visium Asset Management

      Whitepaper

      Behind the Fine: The Downfall of Visium Asset Management

      Visium AM whitepaper

      Data is currently not available
    • Top Compliance Trends for the Buy-side

      Whitepaper

      Top Compliance Trends for the Buy-side

      Top compliance trends for asset managers & hedge funds

      Data is currently not available
    • How to Detect Insider Trading

      Whitepaper

      How to Detect Insider Trading

      Find out how to detect insider trading, with a full list of surveillance recommendations.

      Data is currently not available
    • Top Three Triggers to Detect Front-Running

      Whitepaper

      Top Three Triggers to Detect Front-Running

      Find out how to detect and prevent front-running, including a full list of surveillance recommendatoins.

      Data is currently not available
    • MiFID II Checklist for the Buy-side

      Whitepaper

      MiFID II Checklist for the Buy-side

      Ensure your firm is up-to-date with all requirements pertaining to MiFID II

      Data is currently not available
    • Selecting a Surveillance & Compliance Solution: Buyer's Guide for the Buy-side

      Whitepaper

      Selecting a Surveillance & Compliance Solution: Buyer's Guide for the Buy-side

      Vetting and selecting technology vendors is a complicated process. Let us help you select the correct surveillance and compliance solution for your firm.

      Data is currently not available

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