‘Siri, catch market cheats’: Wall Street watchdogs turn to A.I.
william ruben
Source: Reuters on October 25, 2016 Artificial intelligence programs have beaten chess masters and TV quiz show champions. Next up: stock market cheats. Two exchange operators have announced plans to launch artificial intelligence tools for market surveillance in the coming months and officials at a Wall Street regulator tell Reuters they are not far behind. Executives are hoping computers with humanoid wit can help mere mortals catch misbehavior more quickly. The software could, for instance, scrub chat-room messages to detect dubious bragging
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Start-up launches cloud-based AI RegTech surveillance tool
william ruben
Source: The Trade News on October 20th, 2016 Surveillance tool identifies complex patterns in trading behaviour across multiple markets using cloud and artificial intelligence technology. Neurensic has announced the launch of the trading industry’s first compliance tool that is powered by a cloud-based machine learning architecture. The FinTech start-up – based in Chicago – explained that the SCORE surveillance platform is capable of identifying complex patterns in trading behaviour on a vast scale across multiple markets. To read the full story on
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Neurensic Partners with Vine Street Trading to Provide Compliance and Surveillance Capabilities
Neurensic
CHICAGO, September 16, 2016 -- Neurensic, a fintech artificial intelligence (AI) startup, today announced that its CORE™ product has been selected by Vine Street Trading for its market surveillance and compliance capabilities. Vine Street Trading is a Chicago-based, principal trading group that has focused primarily on electronic futures markets throughout its 10 year existence. “We are proud to partner with an established market maker with complex futures trading strategies in Vine Street Trading,” said David Widerhorn, founder and CEO of
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Worlds of Opportunity: Neurensic’s Tayloe Draughon speaking with FINTECH interns in Chicago
Neurensic
“As you seek worlds of opportunity, look for areas in which there are problems, because if somebody is having problems, there are going to be opportunities.” — Tayloe Draughon, August 2016 This talk was done in July of 2016 as part of the MarketsWiki Education conferences for interns in Chicago.  
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Momentum Ignition: Arson for Financial Markets
Neurensic
ESMA has defined momentum ignition as a case of prohibited market manipulation. ICE Canada considers this to be disruptive, and so does the CME Group. One UK government report stated that momentum ignition will “induce algorithms to compete with other algorithms, can push prices away from fundamental values.”* This leads us to the question - what exactly is momentum ignition? And how do we detect that is has occurred so that compliance teams can surveill for this prohibited activity? An
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MarketsWiki Education Series in Chicago May 2016
Neurensic
Tayloe Draughon, the managing director of product design at Neurensic, talked about the applications for artificial intelligence and machine learning in the financial industry. All the new rules and regulations have created opportunities to design algorithms, for example, to prevent illegal “spoofing”.
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I thought I was clever enough to not get caught
Neurensic
Since November 2015, our machine learning tool for detecting spoofing and market manipulation has been getting a lot of buzz. The company has a record of detecting market manipulation in listed derivatives based upon high profile cases. We put together an Artificial Intelligence (AI) tool that allowed compliance officers to quickly detect who was manipulating the markets and why. But computers don't really trade - they are programmed, just like our trade surveillance tool. Surely these computer programs looking at
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A Fool with a Tool is still a Fool
Neurensic
Machine Learning is getting a lot of buzz. I hear questions from our clients as we have successfully implemented it in our trading surveillance tool. We use machine learning to score the likelihood that trading activity is similar to known cases of spoofing, or layering. Did you catch that? We use Machine Learning for a specific business purpose. We all read Twitter feeds, blogs, and stories about other applications, tools, and techniques. These include discussions on BlockChain, Algorithmic Trading, Cloud
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Probe
CCOs at Brokers Require Probing Data Science
Neurensic
My first direct contact with compliance was confrontational. The team had just developed our first internet trading screens and we were excited to deploy them at some beta futures brokers. It was going to be the first time a retail person could actually trade the CME markets. A compliance person demanded that we identify the actual computer that a person was trading from so he could “go to that location and shut it down if needed.” Today that sounds crazy.
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Integrity & Character Still Matter
Neurensic
Normally I post on something happening in Compliance, Fintech, Machine Learning, or Technology in the Trading & Investment industry. Today's post is no exception, however it takes a more personal approach. Last night was the super bowl. Many of you saw it.  Yesterday I had an opportunity to see Don Beebe, who has played in many super bowl games, speak at The Well in Geneva Illinois (http://cometothewell.org/). He reminded me of the fact that integrity and character still matter. In
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