NEC and Japan Exchange regulation use AI to monitor stock market conditions

Protecting the fairness and credibility of the TSE market

Tokyo, March 19, 2018 - NEC Corporation (NEC; TSE: 6701) today announced that it has provided Japan Exchange Regulation (JPX-R), an independent self-regulatory body dedicated to maintaining integrity in the Japanese securities markets, with artificial intelligence (AI) technologies in order to assist with market surveillance operations and the detection of misconduct, such as market manipulation, in the Tokyo Stock Exchange (TSE)*.

JPX-R has adopted NEC Advanced Analytics – RAPID machine learning (RAPID machine learning) software, part of NEC's portfolio of state-of-the-art AI technologies, NEC the WISE, in order to carry out market surveillance operations using AI. The software is now being used to acquire a wealth of knowledge that was previously used in operations by surveillance personnel to evaluate irregularities in trade activity.

JPX-R believes that the use of RAPID machine learning will enable surveillance personnel to complete preliminary investigations more quickly and focus on detailed investigations, thereby improving their market monitoring functions for protecting the fairness and credibility of the TSE market.

"NEC's Solutions for Society help to ensure the safety and security of businesses and communities alike, and we will continue to provide products and services that make use of advanced technologies, including AI, in order to maintain and improve the fairness of the market," said Michio Kaji, General Manager, 3rd Financial Solutions Division, NEC Corporation. "As we expand our provision of data analysis methods to engineers and data scientists, we expect to see even greater contributions to the efficiency and sophistication of market monitoring functions."

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