AI for Detecting Insider Trading

Overview

A comprehensive AI system that proactively monitors trading patterns, analyses internal communications, and correlates public data streams to identify potential insider trading activities before they materialise into regulatory violations, helping financial institutions maintain market integrity and avoid hefty penalties.

Problem

Financial institutions face significant challenges in manually monitoring vast amounts of trading data
Complex communication patterns across multiple channels make traditional surveillance ineffective
Delayed detection often leads to substantial regulatory fines and reputational damage
High rate of false positives in current systems overwhelms compliance teams
Difficulty in establishing connections between public information and trading patterns
Rising costs of compliance and investigation teams

Solution

An AI-powered platform that:

Uses natural language processing to analyse internal communications across email, chat, and voice
Implements deep learning models to detect unusual trading patterns and volume anomalies
Correlates public news, social media, and market events with trading activities
Creates relationship maps between traders, clients, and potentially connected parties
Provides real-time alerts with risk scoring based on behaviour patterns
Generates comprehensive audit trails for regulatory reporting