New Market Surveillance System Put into Use

31 Dec 2019

Recently, the new market surveillance system of the Shanghai Stock Exchange (SSE) has been officially put into use. It is a major measure by the SSE to implement the plan of the China Securities Regulatory Commission on strengthening the capital market’s reform in an overall manner, propel the in-depth integration of technology and business, and accelerate the improvement of the capability of technological supervision.

Over recent years, the securities market’s size have continuously expanded, new products and trading mechanisms have increasingly emerged, the investor structure has become more and more complicated, and abnormal transactions and violations have been conducted in disguise and in dynamic patterns, which puts forward higher requirements for the surveillance system’s functions and performance. Besides, the ever-changingsupervision technologyhas provided new design ideas for the surveillance system’s automation, intelligence and high performance. Thus, the SSE has organized widespread surveys and in-depth discussions in the industry, absorbed advanced ideas both at home and abroad for designing a surveillance system, and started to build the new surveillance systemafter research.

The new surveillance system, designedbased on the SSE big data platform, expands and integrates trading terminal data, previous supervision data, internet public opinions, companies’ announcements and other information based on trading volume and position data and account-related data. It will raise the efficiency of analysis thanks to synergy of theregulatory bigdata. Moreover, depending on the good expansibility of the big data platform, the new surveillance system can meet the increasing need of data calculation. In terms of function, the system hasa supervisory panelwith flexibility and expansibility, which has 10 categories and fully covers both the main board and the SSE STAR Market, including real-time monitoring, self-regulation, clue analysis, operational surveillance and data-supported investigation.In terms of technology, the systemuses big data processing, smart analysis and other new technologies, such as machine learning, knowledge mapping and text mining, and it improves data visualization, operational automationand model intelligence based on the surveillance system.

Withthe functional testandparallel running completed, the system has been successfully put into use at the end of 2019. Going forward, the SSE will consistently improve the system’s performance, and improve the response capability of the alert engine. Putting the new system into use marks a new step for RegTech and SupTech at the SSE. Thanks to the technology, the trading supervision has achieved substantialeffects, which will vigorously enhance the efficiency of front-line supervision, guarantee the fairness of transactions and boost the steady and sound growth of the capital market.