Regulatory and compliance issues are some of the most important, complex and resource-consuming problems to solve for any organization, especially for startups with limited resources. Over decades of development, regulatory requirements and documentation have grown into a matter of special expertise and skills to decode. Globally, $80 billion is spent on governance, risk and compliance, and the market is only expected to grow, reaching $120 billion in the next five years . According to ANZ, National Australia Bank has estimated that the cost of regulatory compliance has risen from $A86 million annually in 2012 to $A177 million in 2013 and $A265 million in 2014. Westpac was reported to spending $A300 million on compliance last year.

'Siri, catch market cheats': Wall Street watchdogs turn to A.I. NEW YORK (Reuters) - Artificial intelligence programs have beaten chess masters and TV quiz show champions. Two exchange operators have announced plans to launch artificial intelligence tools for market surveillance in the coming months and officials at a Wall Street regulator tell Reuters they are not far behind. Executives are hoping computers with humanoid wit can help mere mortals catch misbehavior more quickly. The software could, for instance, scrub chat-room messages to detect dubious bragging or back slapping around the time of a big trade. It could also more quickly unravel complex issues, like "layering," where orders are rapidly sent to exchanges and then canceled to artificially move a stock price.

Artificial intelligence programs have beaten chess masters and TV quiz show champions. Two exchange operators have announced plans to launch artificial intelligence tools for market surveillance in the coming months and officials at a Wall Street regulator tell Reuters they are not far behind. Executives are hoping computers with humanoid wit can help mere mortals catch misbehavior more quickly. The software could, for instance, scrub chat-room messages to detect dubious bragging or back slapping around the time of a big trade. It could also more quickly unravel complex issues, like "layering," where orders are rapidly sent to exchanges and then canceled to artificially move a stock price.

Neurensic, a Chicago-based regtech artificial intelligence (AI) startup, has announced the release of its new SCORE surveillance platform, the trading industry's first compliance solution powered by a cloud-based machine learning architecture which is able to identify complex patterns of trading behavior on a massive scale, across multiple markets in near real time. The FM London Summit is almost here. The development of the new SCORE platform was led by David Widerhorn and Neurensic's CTO, Dr Cliff Click, the inventor of the H2O artificial intelligence framework, the world's fastest distributed machine learning architecture. SCORE combines high-speed, big data processing power with self-adaptive pattern recognition technology, providing firms with a continuous assessment of the compliance risk associated with complex trading behaviours. The firm's recently completed beta release provided clients with surveillance technology for regulators, proprietary trading firms and futures commission merchants, culminating in engagements with larger institutional customers, including broker-dealers and global banks.

Trader Navinder Singh Sarao, who is resisting market manipulation charges, at Westminster Magistrates' Court In Robert Harris's 2011 novel The Fear Index a secretive hedge fund builds a computer capable of making its own trading decisions. Gobbling up information, the machine starts to confuse its human creators by building huge stakes and making a handsome profit from a market panic. As they assess the outcome, one of the protagonists notes: "The beauty of it is that it was but 0.4 per cent of total market volatility. No one will ever notice, except us." As markets increasingly rely on computer algorithms, reality is imitating fiction: artificial intelligence is becoming a bigger part of investing and it is also helping regulators ensure that traders do not get away with bad behaviour.

Inc.'s 11th annual 30 Under 30 list features the young founders taking on some of the world's biggest challenges. In 2013, a high-frequency trader named Michael Coscia was arrested in New Jersey for an activity called "spoofing"--essentially manipulating the market by flooding trading systems with future orders he had no intention of completing. He was fined 6 million--with the possibility of jail time. It was the first such prosecution under a new set of financial regulations from the 2010 banking reform law called the Dodd-Frank Act. That was an aha! moment for David Widerhorn, 28, and it became his reason for founding Neurensic.

Inc.'s 11th annual 30 Under 30 list features the young founders taking on some of the world's biggest challenges. In 2013, a high-frequency trader named Michael Coscia was arrested in New Jersey for an activity called "spoofing"--essentially manipulating the market by flooding trading systems with future orders he had no intention of completing. He was fined 6 million--with the possibility of jail time. It was the first such prosecution under a new set of financial regulations from the 2010 banking reform law called the Dodd-Frank Act. That was an aha! moment for David Widerhorn, 28, and it became his reason for founding Neurensic.

Neurensic, an artificial intelligence (AI) technology startup focused on software-as-a-service solutions for the financial services industry, has announced the formation of a new Innovation Lab, which will focus on applying its big data aggregation and AI capabilities to nascent technologies such as blockchain. "Neurensic's ultimate goal is to bring together all business processes currently completed post-trade into a single vendor platform that is able to function real-time and at-trade, opening new horizons for self-regulating markets and ultimately redefining all financial transactions. I have faith that our new Innovation Lab will accelerate this process", said said David Widerhorn, Chief Executive Officer. This lab will be led by Neurensic co-founder Zachary Watts, who is being named as Chief Innovation Officer. "Bringing a business intelligence layer to distributed ledger solutions is critical to forming a sustainable path toward adopting these technologies in the long-run," said Watts.