Market Trends of Trade Surveillance Systems Industry
This section covers the major market trends shaping the Trade Surveillance Systems Market according to our research experts:
Cloud-based Platforms Expected to Grow Significantly
- Cloud-based trading activities are rapidly evolving due to the convenience afforded by digitalization and ease of access. However, as cloud-based trading activities expand, the need for trading surveillance grows. Because of their advantages, cloud-based trade surveillance systems are rapidly gaining traction over on-premise trade surveillance systems.
- SteelEye, a compliance technology, and data analytics firm, launched a new suite of communication compliance solutions in the previous year to provide smaller financial firms with access to record-keeping and oversight tools. SMBs can better meet regulatory requirements by facilitating communication data through a flexible and cost-effective platform.
- Cloud-based platforms or solutions provide highly scalable performance and a stable environment for developing these solutions. Furthermore, AI technology predicts patterns in captured data, allowing for a standardized and efficient method of monitoring trade activities and ensuring industry compliance.Vendors are embracing sophisticated technology innovations powered by advanced technologies to automate tasks and workflows, improve regulatory compliance and risk management, and improve overall operational efficiency.
- NICE, for example, improved its SURVEIL-X conduct surveillance solution last year with advanced AI, cloud scalability, and risk detection coverage. Also, better NLP techniques make it possible to automatically link communications and market surveillance data faster, which speeds up the trade reconstruction process.
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North America is Expected to Dominate the Market
- North America is expected to dominate the trade surveillance system market in the forecast period, owing to the well-established trading services in the region. With the most important trading market in North America, there is a high risk of fraud and manipulation, which makes it even more important to set up a trade surveillance system.
- According to the Federal Trade Commission, in the previous year, the United States reported crypto fraud losses that began on social media, the majority of which were investment scams since 2021, with USD 575 million of all crypto fraud losses involving bogus investment opportunities, far outnumbering any other type of fraud.
- Also, the high adoption of cloud-based trade surveillance systems by enterprises of all sizes and the regulations imposed by the regional governments are expected to augment market growth further. North America has also always been the first to adopt new technologies, which has helped the market for trade surveillance systems grow.
- For instance, in the previous year, IBM's partner ecosystem brought hybrid cloud services to any environment with IBM Cloud Satellite. It will enable the organization to deploy and run managed-as-a service applications across on-premises, public clouds, and at the edge. The platform extends the security and open architecture of IBM Cloud in any environment where workloads run to help clients address their challenges when operating across multiple domains and support clients' compliance readiness needs.
- Furthermore, according to a recent article, Nasdaq is testing an artificial intelligence surveillance system to monitor its United States stock market for new instances of exchange manipulation. The system will find unusual trading patterns and send an alert to exchange staff based on a machine-learned protocol. This will allow staff to look into the situation and, in some cases, remove fraudulent equity orders.
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