Our Vision

We intend to become one of the leading Market Surveillance & Enforcement front line regulator by using state of the art technology to protect the good reputation of SIX Swiss Exchange and to assure a fair and efficient market for the trading of securities in Switzerland.

Duties & Responsibilities

Surveillance & Enforcement (SVE) supervises price formation and the transactions conducted on the trading venue so that insider trading, price and market manipulation and other violations of statutory and regulatory provisions can be detected. In the event of suspected violations of the law or other irregularities, FINMA (Swiss Financial Regulator) or if the violations of the law involve criminal offences, the competent prosecution authority has to be informed (Art. 31 FinfraG). In the event of rule breaches, we initiate sanctions proceedings as determined by our judicial bodies.

SVE uses innovative and first in class surveillance technologies to detect trading irregularities. Any indications of possible breaches are subject to in-depth analysis of the situation and further investigation, as needed. SVE surveillance analysts also systematically investigate suspicions reported by third parties.

Prometheus - The next level

The Surveillance & Enforcement department (SVE), which is responsible for trade surveillance within SIX Exchange Regulation (SER), realises another important milestone on its path to becoming one of the leading  market surveillance departments globally . Cutting-edge technologies such as artificial intelligence, big data and a broader data universe are used. Insider Trading, the first module of the newly developed Prometheus application, went live the 1st September 2020.

Since the entry into force of the Financial Market Infrastructure Act (FMIA) reporting regime, SVE now has at its disposal more information regarding the beneficial owner of a transaction. The linking of trading data and this enhanced transaction data served as the impetus for the development of Surveillance 2.0 and thus also Prometheus - a holistic approach. Using innovative approaches and new technologies such as artificial intelligence, machine learning and big data, an in-house team of specialists collaborated with an external partner to create a powerful tool for tracking and uncovering potential insider trading in Switzerland.

And that’s not all:  First half of 2021 a second module of Prometheus will be rolled out: Market Manipulation.

 

How we used to operate

Surveillance & Enforcement used run-of-the-mill market surveillance products whose main focus is primarily on quantitative alert generation. This method generates a high volume of false positive alerts, which results in a lot of additional workload which has to be handled by the surveillance specialists. The use of the latest technologies will allow a clear, systemic focus on higher-quality alerts. This will allow trade surveillance specialists to concentrate even more on the accurate investigations in order to generate real added value.

Target Operating Model – Holistic Approach

Enhancing the existing trade surveillance approach and moving it to the next level requires the implementation of important key factors. The TOM is based on the principles of efficiencyeffectiveness, the inclusion of all stakeholders and a culture of continuous improvement. Furthermore useage of the latest technologies allows a clear, sytematic focus on higher - quality alerts. Trade Surveillance specialists from SVE can even more focus on the accurate investigations ion order to generate real added value.  By taking into account all relevant pieces, SVE created an holistic surveillance approach - Surveillance 2.0.

 

How Prometheus operates

SVE has developed an integrated solution for the detection of insider trading, in line with the requirements of the regulator to cover both aspects of effectiveness and efficiency:

  • effectiveness was achieved by means of the newly developed AI-driven alert engine - it generates more true positive alerts for the user to review and investigate, and relieves the user from investigating a series of false positive alerts;
  • efficiency was achieved by implementing a state-of-the-art work flow case manager software that allows the user to interact with the organisation’s processes while building a dedicated front-end platform to visualise, analyse, and gain interpretable insights into the insider trading detection pipeline for further investigatory analysis or ad-hoc requests.

PROMETHEUS WILL BE AVAILABLE FOR THIRD PARTIES

SER intends to make Prometheus available to third parties after completion of the second module Market Manipulation. Stay tuned and visit our Website for information update on this topic.