AI system to detect deceptions on U.S. stock exchange Nasdaq

Market abuse is always an important issue on stock exchanges. Nasdaq now wants to use artificial intelligence to identify such ads.

In order to detect deceptions and possible market abuse at an early stage, the US stock exchange Nasdaq is now relying on artificial intelligence (AI). However, this is not possible without human analysts. After all, the deep learning system is supposed to work together with corresponding experts.

17.5 million transactions daily

The aim of cooperation between man and machine is to monitor around 17.5 million transactions per day. The new system is an extension of specific monitoring software that detects and displays signs of market abuse.

As Heise Online further explains, the system is now being trained to identify market abuse based on examples from the past. If suspicious activities take place, a human analyst will be alerted – one with the appropriate expertise. The analyst investigates the case and returns it to the system, which is also designed to better identify counterfeits that, according to Nasdaq, are becoming more common.