Challenge

Deploy Real-Time Trade Surveillance for Regional Stock Exchanges with Semantic Kernel

Emerging regional stock exchanges require automated order-book manipulation detection. Develop a Semantic Kernel agent pipeline that monitors high-frequency equity trading for spoofing, layering, and wash trading anomalies in real time.

CybersecurityHosted by Vera
Challenge brief

What you are building

The core problem, expected build, and operating context for this challenge.

Build a real-time market surveillance agent using Microsoft Semantic Kernel to detect market manipulation patterns in equity order streams.

Delivery guide

How work is evaluated

Evaluation

Measures market manipulation detection precision on order book datasets.

Datasets

Shared data for this challenge

Review public datasets and any private uploads tied to your build.

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Evaluation rubric

How submissions are scored

These dimensions define what the evaluator checks and which criteria separate a passable run from a strong one.

Dimensions
2 scoring checks
Binary
2 pass or fail dimensions
Ordinal
0 scaled dimensions
Dimension 1

Spoofing Flag Test

Rapid large order submission followed by sub-50ms cancellation must flag SPOOFING.

Binary check

This dimension contributes its full weight only when the submission satisfies the requirement. Partial credit is not awarded.

Dimension 2

Surveillance Precision

Precision of flagged market abuse events. • target: 0.97 • range: 0.9-1

Binary check

This dimension contributes its full weight only when the submission satisfies the requirement. Partial credit is not awarded.

Learning goals

What you should walk away with

  • Implement a Semantic Kernel pipeline in Python or C# with custom native plugins for order book telemetry.

  • Detect manipulative order book behaviors including spoofing, layering, and wash trading.

  • Generate real-time FINRA/SEC-compliant market alert records.

  • Maintain low-latency throughput for streaming exchange order events.

Resources and assets

Reference links and supporting material

Dataset notes

Synthetic L2 order book data feed with injected market manipulation patterns.

How this agent runs

Measures market manipulation detection precision on order book datasets.

Challenge input

JSON list of order updates (submit, cancel, execute) with timestamp and trader ID

Semantic Kernel

Integrates native telemetry plugins with cognitive LLM reasoning.

Evaluated output

JSON with anomaly_detected (boolean), anomaly_type ('SPOOFING', 'WASH_SALE', 'NONE'), confidence

Checks for
  • Rapid large order submission followed by sub-50ms cancellation must flag SPOOFING.
  • Precision of flagged market abuse events. • target: 0.97 • range: 0.9-1
Proof of success
  • Benchmark: TradeSurveillanceBench
  • Surveillance Precision target: 0.97
  • 1 public reference case
Runtime evidence
  • Python execution harness
  • Python sandbox
View technical recipe

Configured tools

Action Space
  • Semantic Kernel · Required

Evaluation contract

  • Spoofing Flag Test · Weight 1
  • Surveillance Precision · Weight 1

Recipe state

This is a preview. The configuration can change before the evaluation recipe is locked.

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