IIROC, Nasdaq unveil new tech to help protect Canadian investors

New tool will enable better regulator oversight of Canada’s capital markets

IIROC, Nasdaq unveil new tech to help protect Canadian investors
Steve Randall

IIROC now has an improved surveillance system to keep track of Canada’s capital markets.

The investment industry regulator has deployed Nasdaq’s SMARTS technology which significantly enhances its ability to oversee the markets and offer added protection to investors.

“IIROC is positioned at the forefront of market surveillance in Canada, thanks to Nasdaq’s real-time, multi-asset, state-of-the-art SMARTS technology,” says Victoria Pinnington, IIROC’s Senior Vice-President, Market Regulation. “We are setting the stage for our future with a system designed to improve how we oversee securities trading on debt and equity markets, by opening the door to use artificial intelligence that is more analytical and predictive.”

The system is directly managed by IIROC and monitors up to one billion transactions daily in real time. That means that the regulator’s surveillance team can respond faster to trading anomalies across multiple firms and products.

Faster, clearer decisions
With visualization tools giving the team a snapshot from multiple data sources, it will be able to take swift decisions on the next steps needed to protect investors’ interests.

"IIROC has rigorously pursued staying at the global forefront of regulatory market oversight and surveillance innovation,” said Lars Ottersgård, Executive Vice President and Head of Market Technology, Nasdaq. "In our long-term relationship, we have proudly collaborated with IIROC in helping them achieve their goals in maintaining a fair, transparent and safe capital market ecosystem for Canada, as well as its market participants and investors.”

As well as embracing the benefits of new technology, IIROC has recently been focusing on the risks from cybersecurity. It noted that the firms it regulates are performing well in protecting data.