eflow Global upgrades TZEC to combat market abuse with AI

Regulatory bodies worldwide have imposed significant fines amounting to over USD $2.7 billion since 2021 due to failures in eCommunications (eComms) surveillance.

Within the first five months of 2024 alone, USD $95 million in fines has been issued, highlighting an increasing crackdown on market abuse through digital channels.

To address these pressing issues, eflow Global has announced the release of an upgraded version of TZEC, its AI-enhanced eComms surveillance platform. This latest iteration of TZEC integrates advanced analytics and machine learning algorithms to better identify and predict illicit market activities. The platform is designed to provide financial institutions with insightful behavioural analytics that evolve continually.

Ben Parker, CEO of eflow Global, remarked on the industry’s growing obligations: "As regulatory scrutiny intensifies, firms cannot rely on outdated and fragmented surveillance tools. There’s an urgent need for a solution that goes beyond traditional siloed surveillance tools, which drain resources and require multiple teams to 'join the dots' between systems to detect market abuse. TZEC represents a significant advancement in our commitment to providing comprehensive, integrated, and intelligent surveillance solutions that not only meet but exceed regulatory requirements."

One of the core features of the refined TZEC platform is its ability to ingest data from a multitude of digital sources such as email systems, Microsoft Teams, Slack, Bloomberg messaging, and Red Box call recordings. By processing this data, TZEC can detect suspicious behaviour, effectively linking these activities to specific trading instances.

The platform's sophisticated sentiment analysis tool significantly reduces the number of false positives, which would otherwise consume valuable compliance resources. Unlike conventional systems that primarily offer archiving and search functionalities, TZEC leverages eflow's Client Lexicon Service. This service is designed to understand and adapt to the unique vocabulary and jargon of individual firms. Coupled with their Global Lexicon Service, it interprets broader linguistic and industry trends, ensuring that TZEC's analysis capabilities are both comprehensive and nuanced.

Parker highlighted the importance of AI in modern compliance solutions: "By leveraging advanced AI and machine learning, TZEC ensures that our clients can stay ahead of potential compliance issues and focus on their core business operations with confidence."

The platform is also built to be future-proof, allowing firms to easily incorporate new messaging services as they emerge. Moreover, it maintains rigorous audit trails to comply with regulatory record-keeping standards efficiently. Users can also experiment with different configurations in a sandbox environment, thus tailoring the surveillance capabilities to their specific needs.

The introduction of the enhanced TZEC platform marks a significant investment in technological advancements towards more effective market surveillance. Given the increasing financial penalties and regulatory pressures, this solution aims to streamline the compliance processes while providing in-depth insights that support proactive decision-making.