Trade Surveillance System Market : To Exhibits Remarkable Growth | At a CAGR of 14.2% by 2028
Trade Surveillance System Market : To Exhibits Remarkable Growth | At a CAGR of 14.2% by 2028
NEW CASTLE, WILMINGTON, UNITED STATES, October 18, 2023 /EINPresswire.com/ -- Trade Surveillance System Market By Component (Solution and Services), Deployment Model (On-Premise and Cloud), Enterprise Size (Large Enterprises, and SMEs), and End User (Banks, Institutional Brokers, Retail Brokers, Market Centers & Regulators and Others): Global Opportunity Analysis and Industry Forecast, 2021-2028
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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.
The global trade surveillance system market is experiencing significant growth and is anticipated to grow considerably in the next few years. The trade surveillance system is known as a market abuse surveillance system that involves capturing trade data and then monitoring and analyzing it to detect potential market abuse and other forms of financial crime, such as rogue trading. Most authorities across the globe expect firms to have an understanding of trade surveillance requirements. For instance, under the, EU Markets in Financial Instruments Directive II (MIFID II) regulation, the regulator can ask its registered firms to reconstruct the scenario for a trade or order at any point. This requires firms to be readily available to show any related records along with all the transaction details.
Trade surveillance providers have an immense potential to expand products and services in the market. Companies invest in high-end technology such as artificial intelligence, and machine learning that can not only integrate a trader’s electronic communications and trades but also ensure firms to detect patterns across multiple data sets and can improve on its detections. Market Abuse Regulation (MAR) algorithms are able to reduce false positives and generate more relevant alerts. By using the right algorithms, data can be centralized & normalized in one location and can be accessed with more flexibility. All these factors collectively are expected to provide remunerative opportunities for trade surveillance system expansion in the upcoming years.
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The solution segment is expected to garner a significant trade surveillance system market share during the forecast period due to the rise in the need to upgrade the performance of the firms and to analyze vast volumes of data from multiple locations which enhances the efficiency of trade surveillance systems. However, the service segment is expected to grow at the highest rate during the forecast period, as this service ensures the effective functioning of algorithms and platforms throughout the process of trade.
Region-wise, the trade surveillance system market size was dominated by Europe in 2020 and is expected to retain its position during the forecast period. The major factor that drives the trade surveillance system market growth in this region includes the presence of major telecom players, and an increase in stringent regulations and compliance by trade regulators, which enable the adoption of trade surveillance systems by financial institutions in this region. However, Asia-Pacific is expected to witness a significant growth rate during the forecast period, owing to an increase in commercial investments from trading organizations and practices to avoid heavy fines due to violation of rules.
The COVID-19 pandemic has impacted the overall economy along with the trade surveillance system industry. Several end users are facing various challenges, which include a lack of accuracy in timestamping the trades and a growing risk of accessing client information from unregistered channels. In addition to this, growing volatility in the market has increased the adoption of trade surveillance systems among end users to reduce the risk of recording trade errors and false alerts in the system, which fuels the growth of the trade surveillance system market. Trade surveillance system helps organizations to enhance the overall control framework of the organization and also conduct monitoring session on behavioral analysis, which drives the growth of the trade surveillance system market in the pandemic situation.
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Key Findings of the Study
By component, the solution segment generated the highest revenue in 2020.
By deployment model, the on-premise segment generated the highest revenue in 2020.
By enterprise size, the large enterprises segment generated the high revenue in 2020
By end user, the institutional brokers segment generated the highest revenue in 2020.
By region, North America generated the highest revenue in 2020.
The key players profiled in the trade surveillance system market analysis include 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 industry.
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