NEW YORK--(BUSINESS WIRE)--Digital Reasoning, a leader in cognitive computing, today announced that it has been selected as the 2015 FX Week Best e-Surveillance Solution Provider for demonstrating industry-leading electronic communications surveillance capabilities to the global foreign exchange (FX) market.
Collusion, market manipulation, and risky conduct have shaken the FX market and the reputations of the world’s largest financial institutions. Authorities are now aggressively instituting strict controls, processes and policies to ensure this doesn't happen again. Financial institutions are seeking more effective technologies which can enable them to better mitigate the greatest emerging risk they face - human risk.
“Human risk is a big problem, and it requires a novel solution. FX traders are smart, and banks require a smarter technology that can find those that might be colluding and manipulating the market,” said Tim Estes, CEO of Digital Reasoning. “Digital Reasoning spent more than a decade building the best technology, which we call Synthesys, to find concealed relationships and hidden risks within electronic communications. Synthesys is a true cognitive computing platform. That means it is able to learn and adapt where the systems in place today are brittle and very costly to maintain. The world’s leading banks deserve a better solution to this problem and Synthesys provides that.”
Financial institutions have invested heavily in a variety of surveillance and monitoring technologies with a goal of detecting employees and customers who may be putting their bank at risk. Often, however, these technologies do not have the capability to correlate and understand risk holistically. This is especially true when it comes to keeping a close eye on how traders and salespeople are communicating across a variety of electronic communications and trading infrastructures.
“The sheer volume of electronic communications has created a surveillance nightmare for global banking institutions,” said Rob Metcalf, President of Digital Reasoning. “With little more than sampling-based, keyword-driven solutions, front line managers and compliance organizations are overwhelmed by ineffective alerts. At Digital Reasoning, we take a very different approach - applying cognitive computing to communications data - and enabling our clients to focus their efforts on a much smaller number of critical risk areas.”
By analyzing every message in a financial institution’s electronic communications, Digital Reasoning’s Synthesys platform and its team of experienced data scientists can help reveal:
- Risky communications with external counterparties.
- Obfuscated technical language relevant to currencies and the “fix.”
- Unethical activity and breaches of confidentiality.
- Evidence of market manipulation or collusion.
“We are honored to be recognized as the best e-Surveillance Solution Provider by FX Week for demonstrating accuracy, value for money and reliability,” said Metcalf. “It has been our goal to provide financial institutions a trusted means to protect their reputations and comply with a growing number of regulations. Ultimately, Synthesys provides a better way to understand electronic communications, enabling those responsible for managing risk to identify and prevent future problems.”
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