Trade Surveillance Compliance Market and the Battle for Automation
Boston, July 31, 2013 – The future of trade compliance technology lies in constantly improving functionality and platform capabilities to handle ever-increasing amounts of data, especially data of the unstructured variety, according to a new report from Aite Group: The Trade Surveillance Compliance Market and the Battle for Automation.
The trading map is more difficult to navigate than it was 10 years ago, and compliance initiatives within affected firms have accordingly moved from the back office to the front as compliance capabilities have moved from post-trade to real-time.
Aite Group’s research indicates that compliance technology spending is likely to grow by 35% from 2012 to 2015, with hosted solutions persisting as the preferred deployment option. Opportunities exist for vendors to meet growing demands in the areas of mobile functionality, holistic solutions, and communication channel coverage. Challenges in the compliance marketplace mostly surround the problem of obtaining quality data and maintaining a dynamic platform. Although not a primary growth driver, opportunities may also emerge in new geographies as certain markets experience changes in their trading environments and market structure.
Volume trends across asset classes and trading strategies have also added to the focus on increasingly sophisticated compliance technology, rendering a need for effective and flexible automation.
“A good compliance platform should navigate many challenges in order to generate accurate and consistent alerts as well as the specific key features a system must have in order to remain competitive. The ongoing buy-versus-build debate and certain factors in client decision-making also play important roles in the future of the compliance technology industry,” says Danielle Tierney, analyst in Institutional Securities & Investments at Aite Group.
Aite Group's Institutional Services & Investments clients can download the report here.