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AI-powered surveillance for financial markets and transactions
Journal of Digital Banking,
3
(4),
319-329
(2019)
Abstract
The paper presents an overview of financial markets surveillance solutions for the detection of various abusive behaviours. Technological advances support high-performance artificial intelligence (AI)-based solutions that help to avoid the drawbacks of legacy solutions. Many AI-based technologies are applied to detect sophisticated fraudulent actions on financial markets. A good approach is outlier or anomaly detection looking for observations that are inconsistent with remainder of the available data. Among the new technologies available are eyeDES, a cutting-edge AI-based technology and platform whose functional components provide market intelligence and unbiased detection of market abuse. It allows the detection of both previously known and completely new abusive behaviours in real time, effectively combining the use of advanced data analytics to enrich the original data space with new Features and anomaly detection to find inconsistent cases. Each case is provided with a score that measures how different that market participant’s activity is from the others, and a number of possible explanations for this. eyeDES is based on a solid and robust reasoning process, and it is an explainable AI technology, because it provides explanations of the rationale behind the decisions.
Keywords: Artificial Intelligence; surveillance solutions; market abuse detection; anomaly detection; explainable AI
The full article is available to subscribers to the journal.
Author's Biography
Cristina Soviany has an MSc degree in Computer Science from Polytechnics University of Bucharest, Romania, and a PhD in Applied Sciences from Delft University of Technology, the Netherlands. She is a technologist with a strong academic and research and development (R&D) background and more than 15 years of entrepreneurial experience. She is currently the co-founder and chief executive officer (CEO) of Features Analytics, a young technology company based in Belgium. She was awarded the prize for leading the most innovative technology company in Europe in December 2011. Prior to starting Features Analytics, she worked as a senior scientist for Philips Applied Technologies in the Netherlands and later joined Advanced Medical Diagnostics, where she has been leading the development of an innovative technology for cancer tissue characterisation using three-dimensional ultrasound data. She is a frequent speaker at international finance conferences, educating the audience on the effective use of artificial intelligence (AI) technology and solutions. Features Analytics specialises in AI/machine learning fraud detection solutions for large banks and financial institutions, acquirers, payment processors and card issuers. The Features Analytics team has developed eyeDES, a unique AI/streamlined machine learning technology and platform for real-time payment fraud detection and surveillance solutions for financial market abuse detection, applied to foreign exchange, capital markets and anti-money laundering (AML). The company works with Tier 1 financial organisations and global investment banks.
