NEW YORK, Aug. 4, 2021 /PRNewswire/ -- According to new research study on "Trade Surveillance Systems Market Forecast to 2028 – COVID-19 Impact and Global Analysis – by Component, Deployment, Organization Size, and Geography," market is projected to reach US$ 2,789.52 million by 2028 from US$ 850.09 million in 2020; it is expected to grow at a CAGR of 16.5% from 2021 to 2028.
Browse in-depth TOC on " Trade Surveillance Systems Market " (142 - Tables, 95 - Figures, 181 - Pages)
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Trade surveillance systems monitor and detect market manipulation, behavioral pattern, and fraud. Illegal, fraudulent, and manipulative trading are prevented by the systems. The increased demand for enhanced monitoring systems to prevent market manipulation is providing opportunities for players in the global trade surveillance systems market to build a strong client base and increase income. The expanding security trading from various platforms is a big problem for companies in the market. Companies are increasingly deploying proactive trade monitoring systems to optimize their operations because of an increase in trading malpractices. Furthermore, as trade surveillance systems enable firms to investigate driving factors of prices, an increase in the requirement for insights for business planning is expected to provide attractive chances for market expansion. Thus, the above-mentioned factors are expected to drive the growth of the global Trade Surveillance Systems Market in the coming years.
The North America held the largest share in the Trade Surveillance Systems Market in 2020, followed by Europe and APAC. The increasing trade frauds across North America is fueling the demand for trade surveillance systems across the securities market. For example, US prosecutors charged a trader at Canada's Polar Asset Management Partners with insider trading in July 2021. From January 2015 to April 2021, the personnel reportedly made US$3.6 million by stealing sensitive information and using it to front-run his Toronto-based firm's trades. Thus, the rise in insider trading cases across the region is increasing the adoption of trade surveillance system across North America, thereby contributing to the growth of the trade surveillance systems market. The sudden lockdown imposed across the region, due to the COVID-19 outbreak, has severely impacted the stock market leading to high price volatility across the US, which reduced the trading activities. Therefore, the Trade Surveillance Systems Market witnessed decline in the growth. However, the normalization of economy from the third quarter of 2020 led to increase in trading activities across the region. Therefore, the investments are increasing in cloud-based trade surveillance solutions to enable remote surveillance of trading activities. Thus, the COVID-19 outbreak pandemic is having a moderate impact on the Trade Surveillance Systems Market in the region.
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Integration of Technologies such as Artificial Intelligence and Machine Learning to Propel Trade Surveillance Systems Market Growth in Coming Years
With the adoption of security trading across both developed and developing countries, the rate of illegal activities inside the market is increasing. Real-time monitoring and response to malicious activities can prevent huge losses of companies and the market. Trade surveillance is a perfect illustration of how regulatory requirements have grown and diversified, with enterprises having to monitor and report market abuse across more markets and jurisdictions than ever before, and at faster rates.
To provide efficient surveillance services at low cost, Trade Surveillance Systems Market players are integrating technologies, such as artificial intelligence and machine learning, in the systems. For instance, Sybenetix, situated in London, employs artificial intelligence and machine learning to support its trade monitoring and performance evaluation services. The company is credited with pioneering the development of behavioral analytics in the financial sector, merging data analytics with behavior profile algorithms to identify behaviors that may violate market abuse regulations for both buy- and sell-side firms. Similar technologies are used to monitor decision-making behavior to improve trade performance, particularly in investment management. Similarly, Alithya, an AI enables trade surveillance system changes the way compliance team operates in a security market. Thus, the implementation of technologies such as artificial intelligence and machine learning is expected to create lucrative opportunities for Trade Surveillance Systems Market players during the forecast period.
Trade Surveillance Systems Market: Component Overview
Based on component, the Trade Surveillance Systems Market is bifurcated into solutions and services. The solutions segment dominates the market and is expected to continue its dominance during the forecast period. Firms are now monitoring trade on marketplaces more than before, which necessitates visibility across venues and asset classes, and a reservoir of data that is rapidly expanding. Having rigorous controls and monitoring processes in place is important as regulatory bodies continue to raise the stakes. Compliance teams employ a comprehensive approach to surveillance by combining classic alerts-based monitoring with risk-based discovery. Several firms are offering trade surveillance solutions to give detailed information on an individual's activities in relation to market circumstances, peer groups, and their own personal norms, allowing users to identify abusive conduct and persons who are inclined to manipulate the market based on their actions.
Trade Surveillance Systems Market: Competitive Landscape and Key Developments
ACA Compliance Group Holdings, LLC.; Aquis Exchange; b-next; CRISIL LIMITED - A DIVISION OF SANDP GLOBAL; FIS; Nasdaq, Inc.; OneMarketData, LLC.; Scila AB; SIA S.P.A; and Software AG are among key market players in the global Trade Surveillance Systems Market. The leading companies are focusing on the expansion and diversification of their market presence and acquisition of new customer base, thereby tapping prevailing business opportunities.
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In 2021, Fidor Solutions, a 100 % subsidiary of Sopra Banking Software, signed a partnership agreement with SIA, controlled by CDP Equity, to launch its new instant payments service in Germany and in other European countries.
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