Trade Surveillance and Monitoring: State of the Buy-Side Market

Aite Group’s joint study with Nasdaq shows that 32% of buy-side firms don’t have a process for monitoring electronic communications.

Boston, July 25, 2017 — Aite Group’s latest report, Trade Surveillance and Monitoring: State of the Buy-Side Market, shows that the trade surveillance technology market has been riding a strong wave of growth since 2010. The majority of this growth has been driven by global sell-side firms seeking to shore up their compliance infrastructure in the quest for regulatory unimpeachability with the revised Markets in Financial Instruments Directive (MIiFID II), Dodd-Frank, and Market Abuse Regulation (MAR), which are the largest regulatory concerns.

“Protection of reputation was considered by 64% of participants to be the most important reason for investing into compliance,” says Aite Group senior analyst Danielle Tierney. “Even a perceived violation can seriously damage a firm’s public image and directly affect its standing with clients and prospects.”

This study by Aite Group and Nasdaq illuminates the buy-side trade surveillance challenge, focusing on functional requirements, regulatory drivers, and structural trade surveillance pain points. As buy-side firms seek to explore the trade surveillance technology market, technology providers need to better understand their unique requirements. 

About Aite Group:
Aite Group is a global research and advisory firm delivering comprehensive, actionable advice on business, technology, and regulatory issues and their impact on the financial services industry. With expertise in banking, payments, insurance, wealth management, and the capital markets, we guide financial institutions, technology providers, and consulting firms worldwide. We partner with our clients, revealing their blind spots and delivering insights to make their businesses smarter and stronger. Visit us on the web and connect with us on Twitter and LinkedIn.

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