Acuiti today releases Getting to the risk quicker, an in-depth investigation of the challenges facing sell-side trade surveillance departments in the wake of post-great financial crisis and in the face of rising volatility across markets.
This independent report was commissioned by Eventus and collates the views of 71 senior trade surveillance, risk, compliance, technology and trading executives at banks, brokerages and proprietary trading firms in the North American, EMEA and APAC regions. As well as the challenges facing the sector we also look at the future of trade surveillance and what role functions like automation can play in improving its efficiency.
Some of the key findings included:
- 94% of respondents said that the complexity of trade surveillance has increased over the past three years, with 64% saying it has increased significantly
- Increased regulatory requirements and market volatility are the major drivers of heightened complexity in trade surveillance in the last three years
- A majority of sell-side respondents said that their analysts are spending more than 30 hours a week manually closing and investigating alerts
- High manual input is being exacerbated by a shortage of skilled compliance staff
- Firms are increasingly looking to technology for efficiency, with a clear desire for more automated workflows (64% of banks referring to machine learning as either very important or critical)
- Over 60% of respondents had either recently invested or were considering investing in trade surveillance within the next 12-18 months
- Buy-and-build methodologies couple the advantages of both third-party and in-house solutions
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