As exchanges in emerging markets look to attract new listings and investors, the race is on to ensure that they stay ahead of their regional competitors. By implementing the latest anti-fraud and market manipulation detection systems, these emerging exchanges ensure that they not only satisfy wider US and European compliance but also become destinations for fresh capital flows. With insider trading allegations having rocked the regulators, pressure is mounting for market manipulation to be monitored to the same stringency across the globe.

Having selected 3i Infotech's AWACS solution, the implementation for the ZSE took just four months, from project initiation to everyday operation. As a result, the exchange is already benefiting from real-time identification of potential cases of market manipulation across its equity and fixed income markets. Moreover, instead of a time-consuming manual process, ZSE now has all of the data and tools to investigate these cases immediately and classify the probability of a genuine manipulation.

Such is the level of automation within the solution that AWACS incorporates a library of early warning alerts to facilitate detection of possible instances of market abuse. These include insider trading and front running as well as cases of market manipulation including wash trades, spoofing, marking the close, layering of orders and churning. In addition, specific alerts have been configured to meet ZSE's exact requirements further enhancing their ability to monitor the markets.

Roberto Motusi, President of the Zagreb Stock Exchange, said, "Events in recent months have demonstrated beyond all doubt the need for holistic transaction monitoring services. As we move towards a wider market recovery, we look forward to operating with the latest and most efficient technology available.

"Throughout the implementation process we have been very impressed with 3i Infotech, not only the efficiency with which the solut solution was implemented but also in the way the AWACS team worked with the ZSE to deliver the project on time and in budget."

Philip Black, Business Development Director, 3i Infotech - Western Europe, commented, "We are delighted to have delivered our first European installation of AWACS. The fact that the implementation went exactly to plan is a testament to the close working relationship developed between the ZSE and 3i Infotech, as well as a demonstration of the solution's power and flexibility which allow it to be quickly configured to suit the exchange's specific requirements."