Market expert surveillance system
Henry C. Lucas · Communications of the ACM · 1993
The American Stock Exchange (AMEX) is one of the major markets for the exchange of stock and for raising capital in the U.S. The Exchange is responsible for monitoring trading to be sure securities rules are not violated.At AMEX, the responsibility for is shared between two this monitoring departments:Stock Watch and Equities Surveillance.This article reports on the development of an expert system (ES) to assist the Equities Surveillance department investigate possible violations of insider trading rules.There have been other ES developed in finance (for example, see [1,2,7]).However, previous systems have generally dealt with financial analysis [6], planning [8], or investments [4], rather than surveillance for improper behavior.