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In the latest iteration of Nasdaq’s annual Global Compliance Survey (GCS), insights are provided from a variety of capital markets practitioners and build upon the comprehensive views gathered via six previous studies, which have been conducted annually by Nasdaq since 2015. Respondents were asked both quantitative and qualitative questions about their firm-wide compliance and hierarchy, key operational challenges, budgets and spending allocation, trade surveillance infrastructure, and overall monitoring practices.
When looking forward at the next 12 months and focus areas of future surveillance technology investment, three main trends emerged in the GCS.
Surveillance Technology Trends
- An expectation of renewed investment in AI – picking up following the downward trend in 2020 and 2021.
- There is an expected drop in focus on reviewing and replacing surveillance systems (both vendor-provided and in-house). It would seem the strong focus on this area over the last few years is completed and/or winding down, and firms are looking to proceed forward with the surveillance technology they now have in place.
- The prominence of crypto and other digital assets is not surprising – the surge in crypto volumes across digital products (spot and derivatives), together with the increased regulatory focus, was likely to result in increased investment by firms in this area.
The survey also looks at what surveillance tasks are seen as most challenging by firms as they look forward to the next 12 months. According to survey participants, cost scalability, reduction of false positives, and trading and communications surveillance are the most challenging tasks to deal with in the coming 12 months.
In addition, it references the need to apply improved analytics across a broader range of compliance data to generate signals that support the detection system. This includes the integration of signals from eComms and social media, which is also highlighted as a coming challenge by many firms.
Nasdaq Trade Surveillance helps firms to prioritize and focus on urgent alerts by increasing the efficiency of data sorting, detection, and investigation. This is supported by rich functionality that offers intuitive visualizations, preparation for regulations, and the ability to track misdeeds across a variety of markets and asset classes.
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Image and article originally from www.nasdaq.com. Read the original article here.