Palantir Technology Takes on Rogue Traders
June 9, 2016
Rogue trading has always been a problem for the stock market, but the more technology advances the easier it becomes for rogue traders to take advantage. The good news is that security and compliance officers can use the same tools that rogue traders use in their schemes to stop them. CNBC showed the story; “Tech Takes On Rogue Traders” that explains how technology is being used to stop the bad guys. The report is described as:
“Colleen Graham, Chief Supervisory Officer at Signac, discusses Palantir and Credit Suisse’s joint technology initiative to crack down on rogue traders.”
Palantir Technology is being used along with Credit Suisse to monitor trader behavior data trade data, risk data, and market data to monitor how a trader changes over time. They compare individual trader to others invested in similar stocks. Using a combination of all these data fields, unusual behavior is monitored to prevent rogue trading.
The biggest loss on Wall Street is rogue trading. The data Signac gathers helps figure out how rogue trading happens and what causes it. By using analytical software, compliance officers are able to learn from past crimes and teach the software to recognize similar patterns. In turn, this allows them to prevent future crimes. While some false positives are generated, all of the captured data is public. Supervisors and other people actually are supposed to read this data; Signac just does so at a more in-depth level.
Catching rogue traders helps keep Wall Street running smoother and even puts the stockbrokers and other financial force back to work.
Palantir scored a new deal from this venture. The same technology used to monitor the Dark Web is used to capture rogue traders.