The Securities and Exchange Commission is using a new tool to identify trades, even ones hidden in a sea of data, that may violate the federal securities laws, SEC Chair Mary Jo White warned on Monday. In tackling "big data," SEC examiners will use an in-house system called NEAT – national exam analytics tool – to access and analyze ever-larger amounts of trading data much faster than ever, White told attendees at Northwestern University Law School's annual securities conference in Coronado, California. NEAT can search for evidence of potential insider trading by comparing significant corporate activity like mergers against the companies in which a registrant is trading, analyze any trading by the registrant at the time of the events and quickly identify the trading patterns for suspicious activity, White said. The examiners will also use NEAT to identify signs of other kinds of potential misconduct, such as front running, window dressing and improper allocations of investment
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