Robot workers to monitor markets for abusive trading

Robot workers to monitor markets for abusive trading

Japan Exchange Group and the Tokyo Stock Exchange are looking to bring artificial intelligence to bear on determining abusive trading practices in market surveillance operations.

The exchange group is working with NEC and Hitachi to apply robot workers to conduct preliminary investigations of suspicious trading practices flagged up by conventional pattern-tracking surveillance systems. Based on its findings, the AI will decide whether to pass on the data for more detailed investigation by compliance staff.

Japan Exchange Regulation and the TSE say that preliminary tests of NEC's Rapid machine learning and Hitachi's Hitachi AI Technology/H revealed that AI was "highly accurate" in determining the possibility of unfair trading.

The exchange group says the machines will free up surveillance staff to focus on detailed investigations

"While the final decision on conducting such investigations will continue to be made by surveillance personnel, this initiative is expected to facilitate even more in-depth and detailed investigations and contribute to the fairness of the JPX market," they say.

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