Strategic Technology Adoption for Market Surveillance

Financial sector firms increasingly “get” market surveillance. Once seen as a costly extravagance, firms have come to realize that market surveillance technology is critical to avoiding regulatory fines and brand damage. As a result, the market is booming. In its latest analysis of the market surveillance vendor ecosystem, Greenwich Associates forecasts that the global market for surveillance solutions could grow by as much as 21% in 2021.

Greenwich has ranked market surveillance vendors according to their position in the overall market. In this ranking, RIMES is recognized as “segment specialist” for our RegFocus Market Surveillance service. Greenwich notes that “RIMES’ product portfolio is strongly positioned, and being well-resourced has allowed RegFocus to follow an aggressive development strategy in preparation to pursue buy-side surveillance market share in the US and Europe”.

Scott Burke, Regulatory Product Manager at RIMES, comments: “Greenwich’s report highlights the need for financial sector firms to think strategically about their investments. One key decision is whether to go with an established vendor, or with newer entrants to the category.

“This is important because firms need to tailor their surveillance regime to fit their business risk profile – something which is exponentially easier to achieve with an emerging provider that’s keen to partner and grow with its client base. At heart, this is a choice between inflexible, one-size-fits-all first-generation technology and agile next-gen technology.

“The current upswing in regulatory enforcement and oversight in this area, combined with the new normal of remote working has created a perfect storm whereby firms must take a highly strategic view of their surveillance and monitoring technologies. One thing is certain: unprecedented transparency via trade reporting, and the related use by regulators of powerful analytics engines to identify insider trading and market abuse, mean that all financial sector firms now have an imperative to ensure there are no gaps in their data coverage and monitoring capabilities.

“From a technology perspective, that means firms should look to implement highly automated systems that can integrate trade and communications surveillance (including coverage of all digital communications channels – something that’s increasingly important as home working becomes business as usual).”

Contact us to receive more information about RegFocus℠ Market Surveillance, our award-winning solution which handles the many complex challenges of market surveillance.

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