Nasdaq Enhances Market Surveillance with AI-Powered Technology 

Nasdaq Inc. announced the launch of a generative AI-powered feature within its Market Surveillance technology, aimed at improving the efficiency and effectiveness of market abuse investigations. This cutting-edge solution is expected to reduce investigation time by 33%, streamlining the process for detecting and examining suspected market manipulation and insider trading.

The new AI capability will be implemented for U.S. equity market surveillance, promising faster and more accurate identification of potential market abuses. “Maintaining trust in capital markets is critical to preserving long-term growth and prosperity,” said Ed Probst, Senior Vice President and Head of Regulatory Technology at Nasdaq.

The feature utilizes Amazon Bedrock, an AWS service for building secure generative AI applications. This technology will assist analysts by quickly analyzing and interpreting relevant information, enabling more detailed initial assessments of alerts. The AI can generate consolidated tables of regulatory filings, summaries of company news, sentiment analysis, and other pertinent data.

Tony Sio, Head of Regulatory Strategy and Innovation at Nasdaq, emphasized the importance of the new technology: “By drawing on the latest innovations in cloud technology and artificial intelligence, we can better respond to new threats and offer the global financial system advanced tools to tackle market abuse effectively.”