AI Tools Crack Down on Wall Street Trader Code Speak

Compliance software firms are deploying AI to decode complex trader communications and detect potential financial crimes as Wall Street and London regulators intensify scrutiny of market manipulation.

Companies like Behavox and Global Relay are developing AI tools that can interpret trader slang, emoji-laden messages and even coded language that traditional detection systems might miss, WSJ reports. The technology aims to replace older methods that relied on scanning for specific trigger words, which traders could easily evade. The story adds: Traders believed that 'if somebody wanted to say something sketchy, they would just make up a funny word or, you know, spell it backward or something,' [Donald] McElligott (VP of Global Relay) said. 'Now, none of that's going to work anymore.'

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