Market Regulation Services Inc. (RS) will introduce the SMARTS surveillance system over the next 12 months to monitor CNQ and the ATS marketplaces that it regulates.
The SMARTS technology will allow RS to analyse trading within CNQ and on each ATS marketplace as well as across all equity markets, both in real-time and on a post-trade basis.
Thomas Jones, SMARTS co-founder and executive director, said "We welcome this opportunity to deliver our technology to RS. We believe that the Canadian model of outsourcing real-time surveillance to an independent party is a very effective way for the surveillance function to achieve the right level of timeliness and independence, particularly in an environment where liquidity is spread across multiple venues with differing business models. The solution we are providing to RS delivers a `combined view' across all the trading venues in real-time, which is essential to the timely identification of unusual prices, potential information leakages, crossvenue front-running and all the other new regulatory challenges that dispersed trading venues present."
Maureen Jensen, President and CEO of RS, said, "This new technology enhances our ability to perform cross-market analysis. Through SMARTS, RS will continue to grow along with a Canadian equity marketplace that is expanding in both volume and in the number of trading venues. Through it we join a large global community of exchanges and regulators who use this platform to ensure fair and orderly markets."
By choosing SMARTS Integrity Platform, RS will become part of a global community of over 30 exchanges and regulators. For an exchange in a cross-market cross-border world, our system offers a standard, which will facilitate information sharing at a technological level.