The Montreal Exchange (MX) has entered a joint initiative with the Montreal Institute for Data Valorization (IVADO) to explore innovative market data analysis and surveillance solution, Canada’s derivatives exchanges announced Tuesday.
The three-year agreement will see MX regulatory experts working with IVADO data scientists to seek new ways to detect “negative marketplace behaviours,” TMX Group Ltd., the parent company of the MX, says in a news release,
“From behavioural analysis of traders to the detection of market manipulation patterns and identification of new patterns, market surveillance is an area where artificial intelligence will play a key role as an emerging technology,” it says.
“The application of artificial intelligence in the financial services sector, alongside sophisticated trading algorithms, present unique challenges for exchanges in Canada and around the world in terms of speed of execution and market surveillance,” says Luc Fortin, president and CEO of MX and global head of trading with the TMX Group, in a statement.
“Recognized as a catalyst for bridging intelligence between academia and industry, IVADO will help to provide our regulatory division with insights to protect the integrity of the derivatives market,” he adds.