Turquoise, the bank-backed equities trading platform that is being set up to compete with the domestic stock exchanges in Europe, is teaming with Nasdaq-listed Progress Software and London-based consultancy Detica to offer a real-time trading surveillance system.
The market surveillance system will detect breaches of trading rules, root out market irregularities and deliver detailed analysis of trading on the pan-European Turquoise platform.
"Market surveillance is a vital requirement for any stock exchange," says Eli Lederman, chief executive, Turquoise. "This will allow us to add value to the market data we collect and offer further client services such as detailed analysis of transactions and a better understanding of price improvement and performance."
The surveillance system will be based on the Progress Apama complex event processing (CEP) platform. Business and technology consultancy Detica says its brief is to "design, build and deploy" the application.
John Bates, founder and general manager, Apama division, Progress Software, says the real-time detection of complex patterns in market activity "will discourage any potential abusers, maintain an orderly market and promote liquidity".
The Turquoise facility was originally expected to be operational when MiFID came into force in November 2007, but is now not expected to launch until the second quarter of 2008. Turquoise chief Lederman will be providing an update on progress at Finextra's annual capital markets conference Finexpo
in London on Wednesday.
Last year the UK's Financial Services Authority recruited Detica and Progress to develop a similar market surveillance system. In November Detica reported a "sharp decline" in business from investment banks towards the end of its first half following the global credit crunch.