Cross Products Overview

TT Trade Surveillance includes the ability to identify suspicious trader behavior across instruments, products and markets. Once configured, TT Trade Surveillance 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 Trade Surveillance’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.

For additional information on each model, click the links above. Support for additional models will be announced in TT's Release Notes.