The Nigerian Stock Exchange (NSE) and NASDAQ have announced that the NSE, which services Africa’s largest economy, will acquire NASDAQ’s SMARTS Market Surveillance platform to power the exchange’s compliance program.
According to African Business Central, the NASDAQ platform will provide the NSE with the surveillance tools needed to grow and expand the market, as well as monitor for market manipulation, such as spoofing and layering.
The NSE already uses NASDAQ’s X-STREAM trading platform to power the NSE’s trading engine.
“This development affirms our continuous commitment to protecting investors by creating a fair and orderly market. As we introduce new asset classes to grow our market, the deployment of a robust, integrated and efficient solution to monitor the increasing complexity of trading activities is imperative. Regulatory and compliance issues continue to be a primary focus in our quest to become Africa’s foremost securities exchange and we are pleased to be leveraging NASDAQ’s global leadership in the development of capital market surveillance systems,” said Tinuade Awe, the Nigerian Stock Exchange’s General Counsel and Head of Regulation.
“We are thrilled to partner with an innovative forward-looking exchange such as the NSE,” said Tony Sio, Head of SMARTS Market Surveillance at NASDAQ. “NSE has tremendous growth potential and as the volumes and products expand, the sophistication and impact of manipulative practices could also increase. By detecting activities such as spoofing and layering as soon as they occur, the exchange is signaling to the market how seriously it is in promoting a fair market.”
NASDAQ’s SMARTS Market Surveillance platform has been in use for over 20 years by exchanges across the world. SMARTS is the industry benchmark for real-time and T+1 surveillance, supervision and compliance. SMARTS Market Surveillance is currently used by over 52 exchanges and regulators to power market integrity on a global stage.