Inspector: An Expert System for Monitoring Worldwide Trading Activities in Foreign Exchange

Inspector, an expert system, was implemented to assist foreign exchange management in the monitoring of trader activity and the compliance of risk management policies. The knowledge of senior foreign exchange managers, traders, controllers, and auditors is contained in an expert system shell, Nexpert Object. The foreign exchange deals from all Manufacturer's Hanover Trust (MHT) branches are recorded every day in a relational database, Oracle. Combining these systems with local area networks (LANS), global communications, and resident C programs provides a daily review of all worldwide MHT foreign exchange activity. The success of Inspector is directly attributable to the successful combination of traditional technologies, worldwide coverage , and a robust knowledge base. This success demonstrates that expert system technology, coupled with traditional technologies, can be effective in monitoring transaction-oriented financial activities.