Pro lesson, preview locked
Unlock the full video and walkthrough with FinanceFlow Pro.
5:00Market Surveillance: Catching Spoofers and Insiders
Every order you place leaves a timestamped fingerprint. Surveillance engines replay billions of them to find the trader who flashed orders he never meant to fill, or who bought just before the news broke.
Modern markets are watched by machines, not human floor traders. Exchanges, regulators and the trading firms themselves all run market surveillance systems that ingest every order, modification, cancellation and trade, reconstruct the order book, and run hundreds of pattern-matching scenarios looking for manipulation. The dominant commercial engine is Nasdaq SMARTS, used by 50+ exchanges and many regulators; on the regulator side the SEC runs MIDAS and ARTEMIS (Advanced Relational Trading Enforcement Metrics Investigation System), FINRA runs SONAR, and the US-wide Consolidated Audit Trail (CAT) stitches every equity and options event into one record.
Unlock the full lesson with Pro
The complete walkthrough, rail map and quiz for Market Surveillance: Catching Spoofers and Insiders, plus every Pro lesson in the library.