SCORE is the trading industry’s first compliance solution powered by a cloud-based machine learning architecture that is capable of identifying complex patterns of trading behavior at a vast scale, across multiple markets in near real time. The firm has experienced significant customer traction through its recently completed beta release, in which it provided surveillance technology for regulators, proprietary trading firms and futures commission merchants. These relationships have led to recent engagements with larger institutional customers, including broker-dealers and global banks.

Neurensic’s relationships with government and regulatory groups have grown in the past year, helping the firm enhance its surveillance capabilities via improved detection models. SCORE showcases these new features, which include the ability to recognize advanced market manipulation techniques beyond spoofing, such as “flipping,” “collapsing of layers” and “vacuuming.”

“Enforcement against disruptive trading continues to accelerate, and for the first time, prison sentences are a real possibility,” said David Widerhorn, CEO of Neurensic. “With more than 80% of stock trading performed by high-speed computer algorithms, disruptive trading practices such as spoofing, layering and messaging have become a major issue in the capital markets. We now have the opportunity to help our customers gain a better understanding of regulatory risk by identifying trading strategies that closely resemble known illegal behaviors.”

Neurensic’s product offerings protect firms and individuals who can be held personally liable for disruptive trading violations, helping ensure they stay compliant with exchange trading rules and regulatory mandates. By automating the data integration and detection configuration process, SCORE has also streamlined the surveillance deployment experience. Its new architecture allows organizations to get up and running quickly with improved surveillance coverage.

The development of the new SCORE platform was led by David Widerhorn and Neurensic’s CTO, Dr. Cliff Click. Dr. Click is the inventor of the H2O artificial intelligence framework, the world’s fastest distributed machine learning architecture. SCORE combines high-speed, big data processing power with self-adaptive pattern recognition technology, providing firms with a continuous assessment of the compliance risk associated with complex trading behaviors.