Sybenetix

Sybenetix operated as an enterprise behavioral analytics firm, catering to the financial sector, including hedge funds, banks, and asset managers. The company was founded by Taras Chaban, who served as CEO, Wendy Jephson, who was the Chief Behavioral Scientist, and Peter Harnett, who was credited with the original idea and passed away a year after the company's launch. Chaban's background includes over 20 years in front-office roles in finance, such as a fund manager at GLG Partners and a proprietary trader at Credit Suisse and Dresdner Kleinwort. His expertise in machine learning, holding an M.Phil. in Artificial Intelligence, was central to Sybenetix's technological approach.

The firm's core business was providing a system that used cognitive computing and behavioral science to analyze and improve investment performance, risk management, and conduct. Its technology established a baseline of normal trading activity within an organization and then deployed algorithms to identify suspicious behaviors or unusual patterns, which were then flagged for compliance teams. This was designed to help financial institutions enhance surveillance and address complex regulations like MiFID II and Dodd-Frank. The primary product was its Enterprise Behavioural Analytics System, which offered tools to improve decision-making skills and counter behavioral biases. Sybenetix operated on a B2B model, selling its surveillance and analytics platform to financial institutions.

In July 2017, Nasdaq announced its definitive agreement to acquire Sybenetix for an undisclosed amount, with the acquisition being completed in September 2017. The acquisition was intended to bolster Nasdaq's suite of risk and surveillance solutions, specifically for the buy-side industry. By integrating Sybenetix's technology, Nasdaq aimed to offer a more holistic view of behavioral risks across trading and communications, combining behavioral science with machine intelligence. Following the acquisition, Sybenetix's team and technologies were integrated into Nasdaq's operations, with Taras Chaban taking on the role of Head of Buy-side Solutions in Nasdaq's market technology division.

Keywords: behavioral analytics, cognitive computing, market surveillance, compliance technology, risk management, conduct risk, asset management, buy-side solutions, regtech, fintech, investment performance, trade monitoring, financial crime detection, insider trading prevention, algorithmic surveillance, enterprise software, Nasdaq, Taras Chaban, Wendy Jephson, financial regulation