If your business allows for the buying and selling of digital assets you must be able to surveil for any manipulative trading activity. This is not optional, as regulators globally increasingly make clear, and regardless of regulation - it is the right way to protect your clients from abusive market behavior.
Solidus Labs can help with compliance coverage, whether you are looking to expand into digital assets or enhance a current set of assets. We are happy to recommend additional necessary services you may consider if you are expanding into digital assets (OMS, KYT, and other data partners).
Solidus Labs regularly accompanies clients globally in meetings with regulators, in order to help digital asset businesses achieve operating licenses under both existing and new crypto-specific licensing regimes (such as the Singapore MAS Payment Services Act and the Hong Kong SFC Virtual Currency Guidelines).
Solidus Labs is bringing very necessary 21st-century technology to the dormant space of Regtech and particularly to the detection of market manipulation, and most importantly -Solidus Labs is tailored from the ground up to work seamlessly with digital assets.
Building and maintaining trade surveillance systems at scale costs millions of dollars and decades of relevant tech, finance, and compliance expertise. It is also worth considering that increasingly, regulators require digital asset businesses to adopt an 'independent and reputable' solution for market surveillance as part of licensing requirements.The decision is ultimately yours, and we are happy to discuss the costs and benefits based on our experience and work with clients facing the same decision.
As early as possible. While regulations for digital assets are only starting to emerge in some jurisdictions, all regulators are requiring companies to have market surveillance systems. As instituted in the traditional space this is largely done by external third parties that specialize in detecting market manipulation. Ultimately, if you want to focus on your core-business you need to handoff the complex task of market surveillance, and the sooner you start planning - the higher the opportunity and lower the risk for your business.
Modularity is a key value leading our work and pricing. We are mindful that even the most veteran companies in the digital asset space are barely 10 years old. This means budgets are sometimes limited. Solidus Labs platform is therefore designed not as a monolithic solutions, but rather around infrastructure that enables clients to pick and choose the initial items most critical for them to get going, and add features as their business continues to grow.
Solidus Labs’ modern infrastructure and modular approach allow us to offer highly competitive pricing - and with better results and experience.
Alerts are ready out-of-the-box but continue to improve with time. Solidus Labs releases updates approximately every quarter, as the accuracy levels of our machine learning-powered detection models’ increases.
Analysts are able to adjust sensitivity levels around specific parameters, as well as backtest the results against historical data, all from within the Solidus Labs’ dashboard.
If a client is able to deliver data in real-time then yes, we are able to produce alerts in real-time for a subset of typologies. Some typologies require longer detection periods.
Crypto-specific manipulation typologies, a platform that seamlessly works with crypto trading environments, and high customizability features are among the many ways our solutions and company are tailored for the needs digital asset compliance.
We fully intend for clients’ tech resources to not spend time on operationalizing Solidus Labs' solution. The whole point is for you to be able to focus your tech resources on your core business, whether it is your matching engine, OMS or trading strategies. That being said, very limited focus is needed during the technological handshake and the delivery of the trading data - the time this takes varies between companies but normally takes no more than a few days to accomplish.
Solidus Labs integration takes a few days and a full deployment takes as much as a few weeks. We like giving clients early access to the product, in order to let them get to know it while in the background the data teams are connecting the dots. Usually, and depending on the amount of data (as well as historical data) clients produce, alerts will start to generate within a few weeks.
Trading data is anonymized at the client site and no PII is shared with Solidus Labs, nor is it required to detect market manipulation.
Solidus Labs utilizes industry best practices. From encryption and storage to data transit and system updates - we utilize stringent security means implemented by battle-proven cyber security experts.
Briefly, we use a few hybrid models of supervised and unsupervised models tuned and optimized based on known market manipulation schemes.
Unlike rule-based systems, Solidus Labs eventually produces a score determining the likelihood that a certain subset of trading events constitutes to a manipulation scenario. This means that to begin with analysts spend time investigating highly scored alerts. Solidus then learns from our clients and incorporate the feedback directly to the models.
Many of Solidus Labs’ clients started by offering services in one region and post-deployment expanded swiftly by utilizing Solidus’ region-agnostic implementation.
Yes - models are pre-trained and ready for use from the get go. Needless to say, models continuously improve with each additional client and as we discover new manipulation typologies specific for the digital assets space.