The Gateway to Algorithmic and Automated Trading

Market Surveillance, it's a Matter of Risk Management

Published in Automated Trader Magazine

Technology is making a sweeping transformation in trading styles from the accelerating use of algorithms. The increased automation overlaid on a complex market structure provides fertile ground to a broad spectrum of market manipulation and abusive behaviors. This has set the stage for increasing regulatory oversight where the burden of proof rests with market participants to demonstrate control over their trading activity. Surveillance consequently becomes a matter of risk management.

Market surveillance demands sophisticated technologies for real-time alerting leveraging high-performance data management and precision analytics. Time-series tick database and real-time stream processing (otherwise known as complex event process - CEP) provide the ideal technology mix for the organization and understanding of trade data. The ability to consolidate, filter and enrich the markets and order flow is a hallmark of CEP. Trading diversity creates challenges for price transparency and monitoring execution behavior. Achieving this requires highly-customizable analytical tooling - technology that customers can easily pilot.

The OneTick Market Surveillance Service delivers an integrated, real-time examination of order flow for Regulated Entities supporting end-to-end breach detection, alert workflow management and historical replay activities. The solution is a hosted service that can handle the compliance and surveillance needs of market participants with a wide range of benefits:

Comprehensive Solution - designed by market experts, OneTick Market Surveillance is a complete out-of-the-box solution including pre-coded compliance rules, parameterized alert thresholds, email notification, alert monitors and visual dashboards. Precise market data, case management work flow with audit trail, custom reporting and case storage / retention are all part of the product set.

Multiple Deployment Options - OneTick Market Surveillance solution is a fully packaged solution that can be in-house deployed or as a hosted subscription service fully managed by OneMarketData. All you need to provide are your orders and executions - either on-line or in batch.

Flexible Notifications - includes real time / intraday alerts through visual dashboards and email notifications and T+1 reports

Economical Cost - outsource your trade surveillance and compliance obligations at a cost far below in- house development and competitive products.

Extensible Features - built on top of the OneTick tick database and stream processing platform, OneTick Market Surveillance is comprised of pre-built, configurable alert rules for market abuse and market manipulation behaviors for introducing and execution brokers. Included are alert rules for layering and spoofing, high volume detection, quote stuffing, order-to-cancel ratio, marking the close and wash trading.

Additionally, OneTick Market Surveillance supports the needs of market makers with alert rules covering compliance for continuous quoting, locked and crossed market detection and maximum quote width and quote size.

The OneTick Market Surveillance Service provides a low-cost, comprehensive surveillance solution to protect and secure your business against a wide array of market abuse behaviors. The underlying technology is OneTick, a specialized time series 'tick' database and event processing platform optimized for capture, storage and real-time analysis of financial data.

For more information contact OneMarketData at or visit us at