A New Wave in Capital Markets Surveillance
Capital markets surveillance vendor ecosystem is undergoing interesting evolution, with incumbent players ramping up their game, new players entering, and partnerships and restructuring taking place.
New regulations and growing regulatory scrutiny and enforcement are adding to the pressure on capital markets surveillance operations. Responding to the new regulatory and business demands with traditional technology is challenging, because they rely on siloed operations and rules-based software, and may not be able to meet the challenges of growing scale and complexity. Capital markets firms are unlikely to invest and build in-house surveillance capabilities because budgets are limited, and surveillance is not considered a competitive differentiator by most of them.
In a recently published report we discuss the major technology themes emerging in surveillance by analyzing 17 vendor solutions. There is a heavy focus on analytics in general, and leveraging AI and machine learning specifically, for enhancing the surveillance solutions across the board. Specific areas that are becoming important include: