The new technology is intended to help NSE to better monitor market manipulation and manipulative tendencies.
It will also allow the stock exchange to gather intelligence and conduct monitoring, analysis and surveillance, while also executing risk-based supervision of flagged market participants.
Tinuade Awe, general counsel and head of regulation at NSE, said: “As we enter the growth phase of the development of our market, including the introduction of new asset classes such as derivatives, there will be the imperative of processing significant volumes of market information in real-time to detect anomalies.”
She added: “The SMARTS technology, which we have successfully deployed, allows our team to proactively analyse patterns and trends to make sense of the vast amounts of data for investigative purposes and protection of investors, while strengthening the integrity of our market.”
Tony Sio, head of exchange and regulatory surveillance for market technology at Nasdaq, said: “SMARTS performs universal surveillance of all asset classes and provides a strong platform for NSE to develop new products such as derivatives. We look forward to a long partnership with the NSE as the Nigerian markets evolve.”
The Nasdaq SMARTS surveillance solution is now used in 47 marketplaces and 17 regulators globally.