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AI-Based Surveillance System to Keep Close Tabs on Stock Market
For Monitoring Unfair Transactions
AI-Based Surveillance System to Keep Close Tabs on Stock Market
  • By Michael Herh
  • January 25, 2018, 08:30
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Lee Hyeon-seon, chairman of the Market Surveillance Commission at the Korea Exchange is explaining a next-generation market surveillance system scheduled to be launched this year in Yeouido, Seoul on January 24.
Lee Hyeon-seon, chairman of the Market Surveillance Commission at the Korea Exchange is explaining a next-generation market surveillance system scheduled to be launched this year in Yeouido, Seoul on January 24.

 

In the future, if a person spread false information about stocks on the internet, Artificial Intelligence (AI) will automatically capture the securities trading account related to the person. For orders suspected of rigging the market, AI will be able to detect which region the trade takes place in and which listed companies are nearby.

The Korea Exchange Market Surveillance Commission announced its business plan for this year in Yeouido, Seoul on January 24, saying that a next-generation market surveillance system using artificial intelligence would be launched in April. The commission will respond promptly to unfair transactions and establish a customized market surveillance system by means of the surveillance system.

The Market Surveillance Commission explained that recently unfair trade patterns became more and more intelligent via the thorough division of labor to avoid linkage tracking and the diversification of order and information delivery media. To respond to this situation, the commission built an AI market surveillance system based on big data. The concept began to be established through consulting in 2016. The system will go into operation from the end of April after the completion of development by February this year.

"If this system is put into operation, the system will be able to switch to proactive market monitoring," said Lee Hae-seon, chairman of the Market Surveillance Commission. "We will be able to detect new unfair transactions early and respond quickly." This means that atypical unfair trade which was difficult to detect before can be found too.

Using big data, the system can extract and analyze trading accounts linked to fictitious online messages and automatically analyze the availability of undisclosed information for orders placed around the location of a listed company through location information.

The Market Surveillance Commission will respond to large-scale unscheduled unfair transaction involving investment unions or guerrilla-style market adjustments that buy and sell various stocks at short intervals in a day.