Spending on trade surveillance technology has been increasing at an impressive rate and could exceed previous growth expectations as firms address weaknesses in compliance infrastructure exposed during the COVID-19 pandemic, according to a survey by Greenwich Associates.
Over the last decade, the trade surveillance technology market grew at a rate of 13% to 14% per year, it says. At the start of 2020, Greenwich projected that the market would reach $1.2 billion this year, but that annual expansion rates would likely decrease in velocity as the market moves into a more mature phase of growth.
“Then COVID-19 hit and financial service firms suddenly encountered a perfect storm of compliance challenges,” says Danielle Tierney, senior advisor for market structure and technology at Greenwich. “Some firms were simply unable to maintain compliance and surveillance monitoring while continuing operations during onset of the crisis.”
Among the many challenges were difficulties obtaining monitored and secure system access, alert backlogs at firms with insufficient surveillance resources to manage soaring market volumes and volatility, and the struggle to adjust monitoring capabilities and holistic surveillance integration as communication channel usage transformed overnight, the group says.
Based on the industry’s pressing need to overcome these challenges and institute sustained surveillance infrastructure upgrades, Greenwich revised its projection to a growth rate of 23% in 2021, and an increase in spending to approximately $1.5 billion.
Breaking Down a Critical, and Increasingly Complex, Industry
Demand for surveillance technology has attracted an influx of new entrants attempting to win share in this growing market. A new Greenwich report, “Trade Surveillance Solutions: Evolved, Effective and Essential”, explores the market landscape across established market leaders and promising new entrants, identifying more than 50 providers that make up the surveillance and monitoring technology competitive landscape.
It evaluates selected product offerings comprising nearly half of estimated global market share, analyses competitive landscape positioning of top providers and potential disruptors, and examines specialisations in communications monitoring and holistic alert integration.
The evaluation is based on in-depth breakdowns and point-by-point comparisons of the platform features and functionality of the nine key solution providers in the space. This includes core functionality such as trade activity compliance dashboards and cross-market alert correlation, as well as holistic capabilities like audio, mobile device and email communication monitoring analytics, and structured/unstructured data integration and analytics.