Oslo Børs is to make its Smarts market surveillance package available to exchanges worldwide through a joint venture company obSurveX, created in partnership with Computershare.
ObSurveX is based on the existing Oslo/Computershare partnership that is already running the technology through the Norex Alliance of Scandianvian exchanges. The joint venture will make Smarts technology available across multiple markets and adds new business processes to identify and capture market abuse on different exchanges around the world.
Iain Saville, European chief executive of Computershare says: "Hot on the heels of our deals with Deutsche Borse and the Hong Kong exchange, obSurveX is a further example of Computershare working with an expert partner to produce turnkey solutions for securities markets."
A key principle of obSurveX is to share resources and knowledge between exchanges: current and new Smarts users will join the obSurveX Committee - a market user group designed to co-ordinate legal and regulatory challenges on insider trading and market abuse - and use the obSurveX Alert Factory service, which co-ordinates advice and requests from member exchanges to create new algorithms and alerts for all markets.
The goal of the factory is to optimise Smarts' search for market abuse by keeping all user alert rules up to date, says Saville. It will be backed by Oslo Børs and Computershare and will include a research and development centre, plus a centre of excellence that will write alerts following requests and advice from obSurveX members.
"The Alert Factory recognises a fundamental need for continual development of new detection processes; a little bit like the regular virus up-dates we get on our PCs at home," says Thomas Jones, Computershare’s Smarts director for Europe. "Just as viruses change, so does the type of trading activity that Smarts is trying to catch."