Acuiti today publishes Trade Surveillance Market Review: Rising Alerts, Rising Complexity. This report was commissioned by Eventus and is based on a survey and series of interviews of 64 senior trade surveillance and compliance executives across a diverse range of global firms.
In this year’s review, Acuiti investigated where senior executives are facing the biggest challenges amid a rise in trading volumes alongside increasing market complexity.
Some of the key findings of the report included:
- The past five years have seen a notable rise in alerts, a trend that most respondents expect to continue over the next five years for price manipulation, market disruption, and other alert types
- Finding skilled staff remains a critical challenge for many respondents and is becoming a persistent drag for the trade surveillance sector
- The number of false positives that trade surveillance executives deal with is increasing alongside the rise in alerts, with most teams spending time analysing alerts that were eventually discarded
- Order book manipulation is emerging as a major challenge to detect, with the highest reported percentage of false positives and the alert type that takes the longest to investigate
- Despite the need for greater automation, firms are still struggling to implement effective solutions and say that software flexibility was the most challenging feature to improve
- The majority of respondents were either considering or had advanced plans to upgrade or change their trade surveillance systems in the next 12 to 18 months
Download full report here.