January 2, 2014

IEX Adds Analytics to Monitor Trading

By

Phil Albinus

IEX, the buyside U.S. equities trading venue, has deployed Verdande Technology's VTEdge platform for operational surveillance of trading activity.

IEX will use Verdande Analytics as an early-warning system across critical trading platforms to predict and prevent infrastructure glitches related to switches, routers and network links, as well as to surveil orders, fill data and market data.

Verdande Technology's kit is based on case-based reasoning technology, which uses predictive analysis of events with the potential to impact businesses and markets. It will look for potential outages before they happen, for example, so that IEX and its clients make better decisions in real time and with evidence.

IEX is a new buyside trading venue that built a dark pool specifically for the sellside.

"Given the complexity in today's systems, we need to know how to recover from system failures. Verdande has brought to market a disruptive idea that has never truly been executed well: signal processing via Complex Event Processing to understand patterns and deviations from the norm," said Zoran Perkov, head of technology operations at IEX.

He continued: "Cause and effect is no longer a simple linear equation. Verdande allows for a proactive, real-time analytics approach that can help inform a human of what possible decisions they can make to reduce the length of an outage."

"Case-based reasoning is about being able to use truly predictive technology to prevent or mitigate business-impacting events," said Joanne Kinsella, CEO of Verdande Technology Financial Services, "whether that means monetary loss or reputational exposure. In the financial services industry, that can be a challenge, as there are so many versions of normal and data is transmitted at such high speeds that it can be difficult to predict a failure with enough time to get ahead of the problem."

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