Cross Products Overview
Cross Products Overview
TT Score includes the ability to identify suspicious trader behavior across instruments, products and markets. Once
configured, TT Score provides scored clusters for the following models. The clusters will identify activity between
multiple traders across the different configured products.
Scenarios
There are a number of scenarios where the Cross Product functionality can aid in identifying suspicious
behavior between multiple traders and across different instruments, products and markets.
For example, traders may place large orders with no intent for them to fill in one instrument, in order to achieve a
better fill price in a tightly correlated instrument. In this scenario, the traders would attempt to avoid detection
by splitting up the elements of manipulative conduct into different, but correlated instruments.
Supported Models
Currently, TT Score’s Cross Product functionality supports:
- Automated Collusive Spoofing: an attempt by two or more
traders to use automated trading strategies to deceive the market into thinking that one instrument has more
interest, liquidity, or depth in order to take advantage of that deception in one or more correlated
instruments.
- Automated Spoofing: an attempt to deceive the market into thinking an
instrument has more interest, liquidity, or depth by placing large automated orders on one side for the purpose
of causing traders to execute smaller orders on the opposite side in one or more correlated instruments.
- Collusive Spoofing: an attempt by two or more traders to deceive the
market into thinking that an instrument has more interest, liquidity, or depth. Multiple traders will play
different roles in generating and profiting from spoofing the market.
- Spoofing: an attempt to deceive the market into thinking that an instrument has
more interest, liquidity or depth by placing large orders on one side for the purpose of causing traders to
execute smaller orders on the opposite side in one or more correlated instruments.
- Front Running: an attempt to leverage insider knowledge of a future
transaction in one instrument to benefit from the impact to one or more correlated instrument's price.
- Momentum Ignition: an attempt to create directional price movement in
one instrument and then to capitalize on the result in one or more correlated instruments.
For additional information on each model, click the links above. Support for additional models will be announced in
TT's Release Notes.