NASDAQ SMARTS

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SMARTS Group Holdings
NASDAQOMXlogo.png
Founded 1994
Headquarters Sydney, Australia
Key People Dr Andreas Furche, CEO and Director
Products Market Data Surveillance
Website www.smartsgroup.com
Releases Company News

SMARTS Group was a private company based in Sydney that provided market surveillance technology to over 40 national exchanges and regulatory customers and 100 brokers across 30 markets worldwide. The company was purchased by Nasdaq OMX in 2010 and now operates under the name Nasdaq SMARTS.[1]

Nasdaq SMARTS surveillance technology supports surveillance and compliance for 40 marketplaces, 11 regulators and 100 market participants across 65 markets globally.[2]

History

SMARTS emerged from the research labs at the University of Sydney in 1994. The first version of SMARTS was built to monitor trading activity in real-time and was targeted at mining data to systematically identify normal and abnormal trading behavior.

In 2009, SMARTS Group and Capital Markets Surveillance Services merged to form SMARTS Group Holdings. SMARTS Group CEO Andreas Furche said that the merger was “a natural combination of global experts in market surveillance and the logical next step for both organizations.”

In June 2010, SMARTS signed its largest derivatives exchange customer when they were selected by ICE to install its market surveillance platform. [3]

The acquisition by NASDAQ closed in August 2010. According to the firm's 10-K for the fiscal year 2011, the purchase price was $77 million, which included a $75 initial purchase price and a $2 million working capital adjustment.[4]

Products and Services

SMARTS Integrity Platform
SMARTS Integrity Platform takes a real time data feed directly from the trading engine of the relevant exchange or exchanges and processes it in real time, automatically detecting anomalies and producing alerts. SMARTS Integrity Platform provides exchanges and regulators with the tool set to continually detect and analyze market abuse, as well as provide insight and analysis of trading activity. SMARTS Integrity Platform has been implemented by over 40 exchanges and regulators to date, and is in operation in some of the world's largest trading venues, as well as a diverse group of important regional bourses, and many rapidly growing emerging economies.

SMARTS.broker
SMARTS.broker is a managed service designed for brokers to ensure compliance with market regulations and internal risk policies. It is delivered through a browser based application which allows brokers to conduct their own internal surveillance and rapidly detect infringements well before regulators. SMARTS.broker produces alerts for market abuse and suspicious transactions, identifies trading activities that conflict with market specific rules and produces alerts specific to derivatives markets.

SMARTS.broker is used by more than 50 broking firms in 30 markets internationally in Europe, Canada and Asia/Pacific, including many of the largest international firms. The company announced the launch of its SMARTS.broker market surveillance platform for the U.S. in 2009.[5]

Key People (at the time of its acquisition)


References

  1. Nasdaq OMX buys Smarts as surveillance heats up. Financial Times.
  2. Surveillance Solutions. NASDAQ.
  3. Press Release. SMARTS Group Holdings.
  4. The NASDAQ OMX Group, Inc.. SEC.
  5. Press Release. SMARTS Group Holdings.