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Mining Illegal Insider Trading of Stocks: A Proactive Approach

  • Tennessee Technological University

Research output: Chapter in Book/Report/Conference proceedingConference contributionpeer-review

20 Scopus citations

Abstract

Illegal insider trading of stocks is based on releasing non-public information (e.g., new product launch, quarterly financial report, acquisition or merger plan) before the information is made public. Detecting illegal insider trading is difficult due to the complex, nonlinear, and non-stationary nature of the stock market. In this work, we present an approach that detects and predicts illegal insider trading proactively from large heterogeneous sources of structured and unstructured data using a deep-learning based approach combined with discrete signal processing on the time series data. In addition, we use a tree-based approach that visualizes events and actions to aid analysts in their understanding of large amounts of unstructured data. Using existing data, we have discovered that our approach has a good success rate in detecting illegal insider trading patterns.

Original languageEnglish
Title of host publicationProceedings - 2018 IEEE International Conference on Big Data, Big Data 2018
EditorsNaoki Abe, Huan Liu, Calton Pu, Xiaohua Hu, Nesreen Ahmed, Mu Qiao, Yang Song, Donald Kossmann, Bing Liu, Kisung Lee, Jiliang Tang, Jingrui He, Jeffrey Saltz
PublisherInstitute of Electrical and Electronics Engineers Inc.
Pages1397-1406
Number of pages10
ISBN (Electronic)9781538650356
DOIs
StatePublished - Jul 2 2018
Event2018 IEEE International Conference on Big Data, Big Data 2018 - Seattle, United States
Duration: Dec 10 2018Dec 13 2018

Publication series

NameProceedings - 2018 IEEE International Conference on Big Data, Big Data 2018

Conference

Conference2018 IEEE International Conference on Big Data, Big Data 2018
Country/TerritoryUnited States
CitySeattle
Period12/10/1812/13/18

Keywords

  • Illegal Insider Trading;
  • Natural Language Processing
  • Neural Network
  • Stock Market
  • Time Series Prediction

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