Trade Surveillance System Market Outlook – 2028
The global trade surveillance system market size was valued at $780.26 million in 2020, and is projected to reach $2.25 billion by 2028, growing at a CAGR of 14.2% from 2021 to 2028.
Trade surveillance is the implementation of surveillance system to investigate about manipulative or illegal trading practices in the security markets. Trade surveillance helps in maintaining orderly markets by monitoring and detecting the activities of trading. These include market manipulation, analysis of cross-market & cross asset, examination of trades in suspected areas, trade violence, and pre & post trade to ensure fairness and accuracy of transactions in an organization.
Trading has become complex nowadays in financial firms attributed to increased range of financial instruments. Increase in volume of transactions creates the need to monitor the transactions by financial service firms under regulations such as MiFID II, MAR, and Dodd-Frank. According to SteelEye, it is mandatory for financial firms to implement trade surveillance systems, not only to ensure that firms are complying with regulations, but also to reduce the risk of fraudulent malpractice & protect firms’ reputation. Under the Markets Abuse Regulation (MAR), compliance officers are also equally responsible to monitor and evaluate the company’s trading activity.
Rise in need for safety and security of trading activities in the financial institutes, increase in demand for surveillance system to control market manipulation, and abuse system, and stringent regulatory compliance are the major factors that drive the global trade surveillance system market growth. Moreover, high implementation cost hampers the growth of the market. Furthermore, integration of AT and ML in surveillance systems and rise in demand for proactive trade monitoring systems are expected to provide lucrative opportunity for the trade surveillance system market expansion during the forecast period.
The on-premise segment is expected to garner a significant share during the forecast period owing to offering customized solutions to the systems present in the premises and organizing important business data using company’s own IT infrastructure, which allows them to keep the data secure. However, the cloud-based segment is expected to grow at the highest rate during the forecast period, as it facilitates financial service firms with superior control over access to application and sensitive information from distant locations.
By region, the trade surveillance systems market was dominated by Europe in 2020, and is expected to retain its position during the forecast period. The major factors that drive the growth of the trade surveillance system market in this region include the presence of majority of telecom system integrators. In addition, technological advancements in security systems and rise in stringent regulations and compliance by regulators contribute toward the growth of the trade surveillance system market in Europe.
By Component
Solution segment accounted for the largest market share during 2021 - 2028
However, the market for trade surveillance system is expected to witness an upsurge in Asia-Pacific owing to the increased security concerns in the Asia-Pacific countries such as India, China, Singapore, and Japan. The governments in these countries have started to invest heavily in the trade surveillance systems owing to the increased security concerns and to avoid heavy fines due to violation of rules.
The report focuses on the growth prospects, restraints, and trends of the global trade surveillance system market analysis. The study provides Porter’s five forces analysis to understand the impact of various factors such as bargaining power of suppliers, competitive intensity of competitors, threat of new entrants, threat of substitutes, and bargaining power of buyers on the global trade surveillance market.
By Deployment Model
On-Premise segment will dominate the market throughout the forecast period
Segment Overview
The trade surveillance system market is segmented on the basis of component, deployment model, enterprise size, end user, and region. By component, the trade surveillance system market fragmented into solution and services. By deployment model, it is divided into on-premise and cloud. By enterprise size, it is segmented into large enterprises, and SMEs. By end user, it is classified into banks, institutional brokers, retail brokers, market centers & regulators and others. By region, the trade surveillance system market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.
By Enterprise Size
Large Enterprises segment will maintain the lead during 2021 - 2028
Competitive Analysis
The key players profiled in the trade surveillance system market report are ACA Group, Aquis Exchange, b-next, Cinnober, CRISIL LIMITED, FIS, IBM Corporation, IPC Systems Inc., NICE, and SIA S.P.A. These key players have adopted various strategies, such as product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations, to increase their market penetration and strengthen their foothold in the trade surveillance system market.
By End User
Institutional Brokers segment will hold the highest market share during 2021 - 2028
COVID-19 Impact Analysis
The COVID-19 outbreak has a moderate impact on the trade surveillance system market owing to rising pressure on the firms for preserving their critical data in the pandemic situation and decline in spending among the end users. Furthermore, there is a high volatility in the market, due to growing lockdown across the globe and companies are facing various challenges for monitoring of different suspicious trading activities.
Thus, to monitor several suspicious activities during the pandemic situation and to manage soaring market volumes, various companies are adopting trade surveillance systems, which is boosting the growth of the market. In addition, several established leaders of the market are investing heavily on improving the product quality, which is helping them to acquire more market share in the emerging countries across the globe. Thus, growing number of such developments among the key players of the market is driving the growth of the trade surveillance system market.
By Region
Asia-Pacific region would exhibit the highest CAGR of 17.2% during 2021 - 2028
Top Impacting Factors
Rise in Need For Safety and Security of Trading Activities in Financial Institutes
Rise in demand for trade surveillance system on market manipulation such as losing investor confidence, damaging market integrity, fraud behavioral patterning, and insider trading builds pressure on financial firms to invest in holistic trade surveillance system approaches that have less proliferation, ability to collate and monitor multiple structured & unstructured data sets together, and provide financial security in the form of storing large volume of data in the cloud with accuracy.
In recent years, there has been an increase in the number of suspicious trading pattern, in terms of lack of flexibility in deployment, false positives, and data sources that are not truly integrated as per standard compliance which resulted in the need for effective trade surveillance system in financial institutes. Trade surveillance providers have increased the number of solutions to enhance the overall investor interface experience and to keep themselves ahead of their competitors in the market in the upcoming years.
Surge in Demand For Proactive Trade Monitoring Systems
Increase in malpractices in trading activities among enterprises is influencing the companies to deploy proactive trade surveillance systems to optimize their operations. Moreover, increase in need to gain insights for business planning is anticipated to provide lucrative opportunities for market expansion, as trade surveillance system enables organizations to study the factors that are influencing outcomes and providing the power of decision optimization.
Furthermore, buyers and sellers have also increased their trading in products such as exotic derivatives, swaps, and other over-the-counter (OTC) products on different trading platforms, including electronic communication networks, high-frequency trading and dark pools. At this pace of expansion, it is crucial that firms expand coverage for trade data across markets and deploy proactive trade monitoring systems, as this helps generate better alerts.
Key Benefits For Stakeholders
- The study provides an in-depth analysis of the global trade surveillance system industry along with the current trends and future estimations to elucidate the imminent investment pockets.
- Information about key drivers, restraints, and opportunities and their impact analysis on the global trade surveillance system market share is provided in the report.
- Porter’s five forces analysis illustrates the potency of the buyers and suppliers operating in the trade surveillance system industry.
- The quantitative analysis of the market from 2020 to 2028 is provided to determine the trade surveillance system market trends potential.
Trade Surveillance System Market Key Segments
By Component
- Solutions
- Surveillance & Analytics
- Risk and Compliance
- Reporting and Monitoring
- Case Management
- Others
- Services
By Deployment Model
- On-Premise
- Cloud
By Enterprise Size
- Large Enterprises
- SMEs
By End User
- Banks
- Institutional Brokers
- Retail Brokers
- Market Centers & Regulators
- Others
By Region
- North America
- U.S.
- Canada
- Europe
- UK
- Germany
- Switzerland
- France
- Spain
- Rest of Europe
- Asia-Pacific
- China
- Japan
- India
- Australia
- South Korea
- Singapore
- Rest of Asia-Pacific
- LAMEA
- Latin America
- Middle East
- Africa
Key Market Players
- ACA Group
- Aquis Exchange
- b-next
- Cinnober
- CRISIL LIMITED
- FIS
- IBM Corporation
- IPC Systems Inc.
- NICE
- SIA S.P.A.
Trade Surveillance System Market Report Highlights
| Aspects | Details |
 By COMPONENT |
|
 By DEPLOYMENT MODEL |
|
 By ENTERPRISE SIZE |
|
 By END USER |
|
 By Region |
|
 Key Market Players | Cinnober, CRISIL LIMITED, IPC Systems, Inc, Aquis Exchange, ACA Group, B-next, FIS, SIA S.P.A., INTERNATIONAL BUSINESS MACHINES CORPORATION, NICE Ltd |
Analyst Review
According to the insights of CXOs of the leading companies, the trade surveillance market is expected to leverage high potential for the banks and institutional broker’s industry vertical by 2028. The current business scenario is witnessing an increase in the demand for trade surveillance systems, particularly in the developing regions such as China, India, and others, due to an increase in government mandates related to investor & organization safety and security. Companies in this industry are adopting various innovative techniques such as mergers and acquisition activities, to strengthen their business position in the competitive matrix.
Increase in economic strength of the developing nations such as China and India is expected to provide lucrative opportunities for the market growth. Europe is expected to hold a dominant position in the trade surveillance system market globally, with the availability of advanced technology in the region along with presence of major players operating in the market. The region has major players offering advanced solutions with innovative capabilities. This is attributed to the extensive adoption of advanced technology by the region for security of investor and the organization, which is expected to propel the market growth.
Furthermore, technological advances such as machine learning block chain, AI, IoT, and others propel the growth of the market, by giving an opportunity to trade surveillance system in firms to detect patterns across multiple data and centralized data in one place. Moreover, emerging countries in Asia-Pacific and Latin America are projected to offer significant growth opportunities during the forecast period. The global players focus on product development to increase their geographical presence, owing to increase in competition among local vendors, in terms of features, quality, and price.
The Trade Surveillance System Market is estimated to grow at a CAGR of 14.2% from 2021 to 2028.
The Trade Surveillance System Market is projected to reach $2.25 billion by 2028.
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Rise in need for safety and security of trading activities in the financial institutes, and increase in demand for surveillance system to control market manipulation etc. boost the Trade Surveillance System market growth.
The key players profiled in the report include ACA Group, Aquis Exchange, b-next, Cinnober, CRISIL LIMITED, and many more.
On the basis of top growing big corporations, we select top 10 players.
The Trade Surveillance System Market is segmented on the basis of component, deployment model, enterprise size, end user, and region.
The key growth strategies of Trade Surveillance System market players include product portfolio expansion, mergers & acquisitions, agreements, geographical expansion, and collaborations.
Retail Brokers segment would grow at a highest CAGR of 17.5% during the forecast period.
Europe region will dominate the market by the end of 2028.
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