Demand for integrated trade and communications surveillance among financial institutions has surged by 100% this year following heightened regulatory scrutiny across financial markets, according to recent research by SteelEye. The company’s 2023 Annual Compliance Health Check Report, which surveyed more than 300 senior financial services compliance and risk professionals, found integrated surveillance is now a key investment area for 26% of financial firms, compared to 13% in 2022.
SteelEye describes integrated surveillance as the ability to holistically combine, monitor, and analyse structured and unstructured data across trades, orders, communications, and contextual sources such as news and market data. Doing so can uncover risks that otherwise go unnoticed when trade and communications surveillance systems are siloed.
“While regulatory rules haven’t changed much in recent years, the expectations of regulators are higher than ever given how advanced technology in this space has become,” says Matt Smith, CEO of SteelEye. “To meet regulatory demand, financial firms need to get better at detecting potential market manipulation. They won’t be able to do that if they continue to grapple with a proliferation of data, systems, and platforms. Instead, integrated surveillance will be critical in helping firms successfully navigate an increasingly complex and data-dependent regulatory environment.”
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