Nasdaq OMX Group Inc. will implement a software package to track trading on its U.S. exchanges and bolster safeguards and reliability, the exchange operator said in a statement.
Nasdaq, the second-largest operator of U.S. equity markets, said Corvil Ltd.'s CorvilNet monitoring system will let exchange officials analyze activity at the network, application and trading levels, helping to spot anomalies. The technology could also be used to follow the full cycle of a trade.
The Securities and Exchange Commission last week said it would collect $10 million from Nasdaq to settled charges that its mishandling of Facebook Inc.'s May 2012 initial public offering was a violation of securities laws. In the year since the IPO, Nasdaq had created the position of chief information officer and global market systems and changed many of its systems.
"We continue to proactively integrate sophisticated technology solutions as a means to reduce risk exposure in a constantly evolving electronic marketplace," said Eric Noll, executive vice president of transaction services for the U.S. and U.K at Nasdaq. "There is a need for greater visibility to deal with competitive and regulatory forces that shape operations."