The new Insider Trading V3 is now available. Key improvements are:

Smoothed Price move calculation

The new version now handles outliers where one erroneous message with price significantly away from the average causes false triggers to occur. The delta from average is configurable per instance of the alert.

Grouping Trades and Orders

The V3 alert now groups the total value of all partial fills from a single parent order into a single figure which is then compared to the and the Large Value Threshold. When run against orders, the alert will focus only on unexecuted orders to avoid duplicates. This helps reduce false positives and saves time for compliance analysts.

Alert Suppression

Insider Trading now suppresses alerts where the suspicious trades or orders were at a less profitable price. For example, an early day buy of 10 lots at $100 where the instrument closes at $90. The next day sees a news triggered jumps of 10% ($99). The alert will not trigger because the original price was higher than the news triggered jump and so no profit was made. This functionality is optional and can be turned off to track failed insider trading attempts. Additionally, the alert can be run in the sandbox to assess the effect of turning it on or off against known data.

Potential profit calculation

The alert now makes a calculation of potential profit or avoided loss based on the sum of all the fill price and volumes, as well as the price movement in the market. This calculation can then be compared against a customizable value to give an indication of the scale of the insider trading.