Nasdaq undertakes 14 million trades a day on its exchange making it nearly impossible to detect market abuses taking place. However, with the help of artificial intelligence (AI), Nasdaq is cracking down on the bad behavior.
There are several things that Valerie Bannert-Thurner, senior vice president and head of risk and surveillance at Nasdaq, considers when it comes to bad behavior on the exchange.
Speaking to the American Banker, she said:
If people are excessively profitable given how they trade and in comparison to everybody else trading the same instruments with similar styles, then we ask, is this luck or something else?
Yet, with an excessive [...]