The global trade surveillance market size was valued at USD 717.2 million in 2020 and is projected to expand at a CAGR of 19.4% during the forecast period, 2021–2028. The growth of the market is attributed to the growing requirement for security as well as increasing incidences of data manipulation and fraud in financial institutions.
Implementing a surveillance system that monitors or detects activities such as market behavioral patterning, fraud, manipulation, and more across all asset classes and products is known as trade surveillance. Enterprises and market specialists use trade surveillance to avoid change in trading tactics in less time and comply with regulatory rules. The trade surveillance system is also used to achieve transparency and supervision in current market commerce.
Trading strategies have moved in recent years from labor-intensive to automated and algorithmic trading. These cutting-edge trading strategies have increased market capacity, decreasing human limits. Furthermore, as a result of technology advancements and the dominance of automated trading in the market, speed has become the most important aspect in high-frequency trading, with consumers shifting from seconds to microsecond operations. As a result, the risk of market manipulation and fraud has increased, making transaction surveillance systems a prerequisite for trading.
Market monitoring is also carried out by several private sector entities. For example, the NASDAQ OMX product SMARTS Trade Surveillance assists individual trade exchanges as well as regulatory bodies in monitoring trading operations across different markets. Other large exchanges, such as NYSE Euronext, use third-party vendors such as IBM (Surveillance Insight for Financial Services) to customize and set up surveillance capabilities. The global shift to home-working prompted by the COVID-19 pandemic has heightened the risk of market manipulation in fund management.
Market Trends, Drivers, Restraints, and Opportunities
- Internal policy breaches pose main reasons behind the fast rise in illegal trading in financial institutions, which is boosting the demand for surveillance systems that can identify trade rule infractions.
- Increased adoption of internal compliances and tight regulatory rules by exchange departments and financial institutions are estimated to fuel the market growth.
- Increased volume of the global trading and rapid establishment of various new companies across industries are expected to fuel the market growth.
- High cost for cloud platform installation acts as a major restraining factor that can hinder the market expansion.
- Rising scandals and occurrence of fraudulent trading practices are key factors offering new growth opportunities for the service providers.
Scope of Trade Surveillance Market Report
The report on the global trade surveillance market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.
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Attributes
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Details
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Report Title
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Trade Surveillance Market - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast
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Base Year
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2020
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Historic Data
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2018–2019
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Forecast Period
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2021–2028
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Segmentation
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Deployment (On-premise and Cloud-based), Components (Solutions [Reporting & Monitoring, Surveillance & Analytics, Risk & Compliance, Case Management, and Others] and Services [Managed and Professional]),
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Regional Scope
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Asia Pacific, North America, Latin America, Europe, and Middle East & Africa
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Report Coverage
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Company Share, Market Analysis and Size, Competitive Landscape, Growth Factors, and Trends, and Revenue Forecast
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Key Players Covered in the Report
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ACA Group; Aquis Exchange; Cinnober; CRISIL LIMITED; FIS; IBM Corporation; IPC Systems Inc.; NICE; and SIA S.P.A.
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Trade Surveillance Market Segment Insights
On-premise segment is expected to grow at a rapid pace
Based on deployments, the trade surveillance market is bifurcated into on-premise and cloud-based. The on-premise segment is expected to grow at a rapid pace during the forecast period due to certain benefits such as simple connection with an organization's current IT infrastructure and a high level of data security.
However, cloud-based trade surveillance solutions are preferred over traditional trade surveillance systems. As a result, the cloud segment is anticipated to hold a key share of the market in the coming years owing to increased use by small, medium, and big businesses as well as freelancers.
Solution segment is projected to expand at a considerable CAGR
On the basis of components, the market is bifurcated into solutions and services. The solutions segment is segregated into reporting & monitoring, surveillance & analytics, risk & compliance, case management, and others. The services segment is bifurcated into managed and professional. The solutions segment is projected to expand at a considerable CAGR during the forecast period owing to some factors including the optimization of surveillance data, enhanced compliance management, and case management streamlining.
On the other hand, the surveillance & analytics segment is anticipated to account for a major market share during the forecast period due to benefits such as systematic gathering and analysis of outcomes from acquired data utilized in planning, analyzing, and implementing compliance policies and procedures.
North America is anticipated to constitute a key market share
In terms of regions, the trade surveillance market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is expected to constitute a key share of the market during the projected period due to the high number of wealth management organizations and financial institutions, as well as the increasing digitalization in the region. However, the market of Europe is anticipated to expand at a rapid pace during the forecast period owing to the widespread deployment of cloud-based trade monitoring technologies by businesses and government-imposed trading rules in the region.
Segments
The global trade surveillance market has been segmented on the basis of
Deployments
Components
- Solutions
- Reporting & Monitoring
- Surveillance & Analytics
- Risk & Compliance
- Case Management
- Others
- Services
Regions
- Asia Pacific
- North America
- Latin America
- Europe
- Middle East & Africa
Key Players
- ACA Group
- Aquis Exchange
- Cinnober
- CRISIL LIMITED
- FIS
- IBM Corporation
- IPC Systems Inc.
- NICE
- SIA S.P.A.
Competitive Landscape
Key players competing in the global trade surveillance market are ACA Group; Aquis Exchange; Cinnober; CRISIL LIMITED; FIS; IBM Corporation; IPC Systems Inc.; NICE; and SIA S.P.A. Trade surveillance companies are focusing on new product development, product refinement, and collaborations, all of which help them grow their market share. For example, Nasdaq, Inc. announced in April 2018 that Gemini Trust Company, LLC, a next-generation digital asset exchange and custodian, to monitor its marketplace using Nasdaq's SMARTS Trade Surveillance technology.
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