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Trade Surveillance Systems Market Analysis

The trade surveillance systems market is expected to register a CAGR of 18% during the forecast period. With erroneous or abusive trading, the need for trade surveillance systems is growing. It helps to prevent market fraud and comply with government regulations.

• The primary factor driving market growth is the increasing instances of market manipulation and fraud worldwide. These frauds and manipulations incur enormous losses for the overall public. Hence, the need for financial institutions to pre- and post-monitor trading activities is driving market growth. Also, the increasing demand for mandatory regulatory compliance further augments market growth. Furthermore, as social media usage grows, so does its impact on businesses worldwide. As a result, the need for careful monitoring of the risks involved in market trends is increasing, further stimulating market growth.
• For instance, the previous year, CoinDCX, India's first crypto unicorn and the country's safest crypto exchange, announced it had appointed Solidus Labs as a strategic compliance partner. Partnering with Solidus enabled CoinDCX to forge greater trust and transparency on its platform, cement its leadership as India's digital asset exchange, and protect its users from known market abuse and many emerging crypto-specific risks. However, market growth is expected to be hampered by a lack of technical expertise due to the complex infrastructure of trade surveillance systems. Lack of awareness, especially among small and medium-sized businesses (SMEs) in developing economies, is likely to be another major factor that slows the growth of the market.
• Regulated financial companies demand more sophisticated surveillance solutions to monitor the trades of more complex structured product offerings effectively. Furthermore, various trade surveillance providers are developing new products and feature updates to fulfill regulatory and end-user needs. For instance, last year, Trillium Labs announced its "best execution solution module" for its "surveyor's trade surveillance platform." Surveyor's best execution solution is expected to offer customers easy-to-understand visualizations, highlighting key metrics to monitor execution quality effectively. Additionally, it could identify pricing outliers and further drill down into order and execution data.
• According to LexisNexis Risk Solutions, the COVID-19 pandemic created new challenges for end users, as most of these firms still need a formal process for identifying and tracking emerging threats. The company also said that a strategy that puts technology first can lower costs and improve operations across the compliance spectrum.

Trade Surveillance Systems Industry Segmentation

Trade surveillance is the process of setting up a surveillance system that watches and finds signs of market manipulation, fraud, behavioral patterning, and other things. This makes sure that abusive, manipulative, or illegal trading practices in the securities markets are stopped and looked into.

The trade surveillance systems market is segmented by component (solutions, services), deployment (cloud-based, on-premise), and geography (North America, Europe, Asia-Pacific, the Middle East and Africa, and Latin America). The study's scope also includes the impact of COVID-19 on the market and affected segments. Further, the disruption factors that will impact the market's growth in the near future have been covered in the study regarding drivers and restraints. The market sizes and forecasts are provided in terms of value (USD million) for all the above segments.