Acuiti Report Reviews The Demand For Trade Surveillance Systems
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An Acuiti report has said that trade surveillance is facing imminent changes following increased volatility, high trading volumes, and fragmented markets.
The “Trade Surveillance Market Review: Rising Alerts, Rising Complexity” report noted that surveillance experts anticipated an increase in the volume and complexity of alerts that need attention in the coming years.
Trade Surveillance Systems Could See Increased Demand
The report has said that around 38% of firms wanted to upgrade their trade surveillance systems. It found that most traders expected increased alert volumes in sectors such as order book manipulation, market disruptions, and price manipulation.
It also mentioned that significant investments were seen in automating trade surveillance. Nearly 90% of the respondents involved in the survey noted that less than 10% of the alerts obtained needed an intervention or reporting to regulations. This limitation called for sophisticated systems.
38% of firms plan to upgrade their trade surveillance systems in the next 12 to 18 months. 15% of them also planned to upgrade these systems.
The investors that had deployed advanced surveillance technologies said there was a drop in regulatory risk, higher staff satisfaction levels, and less concern from senior management. Investments have also resulted in better features in surveillance software, such as better investigative tools and customization options.
Complexities In Trade Surveillance
The reported noted challenges in securing skilled staff to manage the increased complexities around the industry. It noted that the current trends prompted firms to invest in automation while improving the capabilities of the existing trade surveillance software.
Eventus CEO Travis Schwab also commented on the development, saying there was a need for robust automation to reduce the pressure on surveillance staff. He noted the benefits of giving professionals access to the tools needed to understand procedures and conclusions.
“The report clearly illustrates the tremendous pressures and challenges faced by surveillance staff that are expected to grow. Interviews with executives also reinforced the need not only to take the pressure off of these professionals with robust automation but also ensure they have the ability to fully explain behaviours and the procedures that led them to their conclusions,” Schwab said.
The report also noted that the industry needed to address the increasing complexities in trade surveillance. The market dynamics had also become more advanced and volatile, with firms planning to invest in advanced and automated surveillance systems for better risk management.
