Big Data Used To Spot Insider Trading

Big Data Used To Spot Insider Trading

Aretec Employs Proven Software Development Quality Management Processes to Develop Production-Ready Data Science Solutions


Insider trading is the trading of a public company’s stock or other securities (such as bonds or stock options) by individuals with access to nonpublic information about the company. Insider trading is illegal because it gives the insider an unfair advantage in the market, puts the interests of the insider above those to whom he or she owes a fiduciary duty, and allows an insider to artificially influence the value of a company’s stocks. Aretec’s client possessed powerful data analysis tools to detect suspicious patterns that detect the improbable success of trades in advance of earnings announcements. Our client had a requirement to further enhance their quantitative analysis capabilities by having their robust insider trading analysis toolkit, written in R, interface with the presentation layer of an Aretec developed platform.


Aretec’s data scientists, quantitative researchers, financial engineers, and developers engineered a solution that culls through billions of rows of trading data going back many years to identify individuals who have made repeated, well-timed trades ahead of corporate news. Our team developed a framework that entailed the sharing of functioning analytics and best business practices for enforcing insider trading laws. Additionally, the code was developed to support a client/server model that can either be deployed to an on-premise infrastructure or cloud-based infrastructure.


• Enhanced capability to further identify potential instances of insider trading worthy of further investigation.
• Allows our client to initiate insider trading probes, without having to wait for tips which most often are launched based on referrals from external sources
• Data mappings, normalization, and data validation
• Data exception reports
• Reconciliation between source and transformed data
• Data transformation audit trail
• Standardized database creation and report querying
• Key metrics automatically created
• Standardized and customized analytical reports