Finance Feeds logo

Tokyo Stock Exchange aims to use AI to detect unfair trading

Maria Nikolova

JPX-R and TSE are testing AI solutions, developed by NEC and Hitachi, for market surveillance.

One more step has been made towards the use of Artificial Intelligence (AI) solutions in the trading industry, and, without any surprises – this is happening in Japan again.

Today, Japan Exchange Regulation (JPX-R) and Tokyo Stock Exchange, Inc. (TSE) announced they are working on applying AI to market surveillance operations by using technologies developed by NEC Corp (TYO:6701) and Hitachi, Ltd. (TYO:6501).

NEC’s RAPID machine learning and Hitachi’s Hitachi AI Technology/H (you may have heard of it as “H”) were used in preliminary investigations. The tests showed that AI solutions were highly accurate in identifying the possibility of unfair trading.

One advantage of such systems over conventional surveillance systems, which determine cases of unfair trading based on preset patterns, is that AI is able to learn on its own and determine the possibility of unfair trading. “H”, for instance, is known for its ability to learn from voluminous amounts of data and make judgments on its own, thus removing the need for people to set up hypotheses in advance and finding solutions that human beings had not even conceived.

Regarding their futures plans, JPX-R and TSE say they will apply AI technology in preliminary investigations, whereas surveillance personnel will focus on detailed investigations. The final decision in such investigations will still be made by surveillance personnel.

The exchanges will keep working toward the actual application of AI to market surveillance this year.

Japan is famous for its welcoming approach towards novel technologies, robotics and AI. This trend has already affected the Japanese financial services sector, where AI is replacing human beings in certain roles. In January this year, FinanceFeeds reported about Japan’s Fukoku Mutual Life Insurance plans to lay off 34 members of its staff, replacing them with IBM’s Watson Explorer Artificial Intelligence system.

Whereas there have been calls to protect human employees’ rights with regards to the advances of AI in the labour market, some consider that AI will actually improve the quality of human work and will take it to the next level rather than make human beings useless.

Subscribe

Read this next

Digital Assets

Masa Announces Comprehensive AI Developer Ecosystem with 13 Dynamic Partners Focused on Leveraging Decentralized Data and Large Language Models

In a groundbreaking development, Masa, the global leader in decentralized AI and Large Language Models (LLMs), proudly announces the launch of its AI Developer Ecosystem, partnering with 13 visionary projects.

digital face
Financewire

Kinesis Mint becomes the official partner for the House of Mandela

Kinesis Mint, the certified independent precious metals mint and refinery of Kinesis, the monetary system backed by 1:1 allocated gold and silver, has been appointed the exclusive coin producer for the House of Mandela.

Photo of Nelson Mandela
Chainwire

Kadena Announces Annelise Osborne as Chief Business Officer

Kadena, the only scalable Layer-1 Proof-of-Work blockchain, expands its leadership team by onboarding Annelise Osborne as Kadena’s new Chief Business Officer (CBO).

Image of a woman with the citate
Fintech

TNS brings full-stack market data management to EMEA

“We are also delighted to have Ben Myers join our London-based TNS Financial Markets team as Head of Strategic Sales for EMEA, to bolster our presence in the region.”

Chainwire

Velocity Labs and Ramp Network facilitate fiat to crypto onramp on Polkadot via Asset Hub support

Velocity Labs is proud to announce a fiat to crypto onramp using Ramp Network through the integration of Asset Hub. Through it, Ramp will be able to service any parachain in the Polkadot ecosystem.

Symbol of Ramp network
Executive Moves

INFINOX hires Mayne Ayliffe as Global Head of HR

“I look forward to working with our teams around the world to develop a strategic HR agenda that supports high performance and is centred on human motivation.”

Mayne Ayliffe joins INFINOX
Fintech

Sterling to provide risk and margin support for fixed income

“Firms must have the tools to effectively manage their risk across all asset classes. As yields rise, we see more exposure from clients in the fixed income space. We understand their need to measure and mitigate risk in a highly regulated environment.”

Retail FX

FXOpen launches HK share CFDs: Tencent, Alibaba, Xiaomi, Baidu

Hong Kong share CFDs will be commission-free for a limited period of time.

Retail FX

IronFX Celebrates an Award-Winning Start to 2024 with a Series of Industry Recognitions

IronFX, a global leader in online trading, has embarked on 2024 with a spectacular display of accolades that highlight its commitment to excellence and innovation in the competitive financial services sector.

<
✖