Japan applies AI to market surveillance operations
Japan keen on AI
Tokyo Stock Exchange (TSE) and Japan Exchange Regulation (JPX-R) revealed that they have been reviewing artificial intelligence (AI) technologies developed by NEC Corporation and Hitachi to improve market intelligence operations.
At present, surveillance systems identify orders that might have benefited from unfair trade practices, based on certain criteria. Surveillance personnel based on the trading situation of the orders then investigate the possibility of unfair practices – and determine if detailed investigations are warranted.
When NEC’s Rapid machine learning and Hitachi AI Technology/H were applied for preliminary investigations, the results were impressive: AI showed to be highly accurate at weeding out orders that might be tainted. Further, unlike the pre-set criteria used in existing systems, AI was able to learn on its own and improve its success rate.
The two organisations are keen to apply AI technology to preliminary investigations and hope that this will allow surveillance personnel to focus on detailed investigations.
By Soumik Roy, editorial contributor to Banking Technology
