Nasdaq OMX Group installed technology developed by the vendor Corvil that monitors the performance of its trading and other systems. The move is intended to help Nasdaq contend with a more unforgiving regulatory climate, as well as better service its members.
“This will allow us to make sure we are in compliance with the general regulatory functions that are becoming more and more prevalent,” Nasdaq senior vice president Brad Vopni told Traders Magazine, “and more critical for the safety and protection of the markets.”
The Corvil technology will allow Nasdaq to simultaneously analyze activity at the network, application and trading layers, according to Nasdaq, as well as track the full life cycle of a trade. Nasdaq is Corvil’s first customer for the new technology.
According to Vopni, the technology will enable Nasdaq to react to problems much more quickly, as the Corvil system will alert Nasdaq’s operations staff in real time. That has been the experience with Corvil’s latency measuring technology, Vopni added, where the alerts cut staff response times from hours to seconds.
Driving Nasdaq’s decision to monitor its systems more closely is pressure from the Securities and Exchange Commission on exchanges to better adhere to their regulatory obligations. In the past year, the SEC has fined both Nasdaq and the New York Stock Exchange, following systems-re lated problems, for breaches of the rules governing self-regulatory organizations.