3i Infotech, a global provider of IT solutions, today announces that the Zagreb Stock Exchange (ZSE) has become the first European bourse to license its automated, multi-segment market surveillance system, AWACS.
Exchanges around the world, particularly those in emerging markets, are looking to implement transaction monitoring systems in order to improve investor confidence. While many currently use manual or semi-automated processes they are under increasing pressure from regulators to install fully-automated systems.
AWACS proved its capabilities to ZSE during a rigorous proof of concept and will now be used to handle all elements of the surveillance process for its equity and fixed income markets. ZSE may extend this in the future to include derivatives.
Roberto Motusić, President of the Zagreb Stock Exchange, said, “Having reviewed a number of surveillance systems we selected AWACS because of its flexibility, powerful functionality and rapid time to market. An impressive proof of concept, in which AWACS correctly identified real cases of market manipulation despite the data having been masked, sealed our decision.
“We recognise the importance of protecting investor confidence in the ZSE and by automating the transaction monitoring process AWACS will play a significant role in this. Moreover, at a later date we are planning to offer a service to other smaller exchanges in the region that will also enable them to benefit from automated surveillance.
Philip Black, Services and Solutions Director, 3i Infotech – Western Europe, commented, “With the emerging European markets in need of greater protection against manipulation than ever before, the implementation of a system like AWACS ensures that these exchanges develop and maintain a reputation as secure and transparent venues. ZSE has taken a significant step forward in selecting AWACS, bringing an increased level of surveillance that can only be achieved with an automated process, and choosing a system that will easily scale as its transaction volumes increase in this rapidly growing marketplace.”