Global Trade Surveillance System Market Size and Share - Outlook Report, Forecast Trends and Growth Analysis (2025-2034)

Trade Surveillance System Market Overview

Trade surveillance involves monitoring financial transactions to detect and prevent market abuse, insider trading, and other illicit activities. In 2022 the SEC brought 43 insider trading cases compared to 28 in 2021. The 43 cases represented 9% of the enforcement cases brought in 2022. 

Financial institutions are incorporate e-communication surveillance capabilities leveraging contextual analytics, behavioural analytics, and advanced predictive analytics, boosting the trade surveillance system market. Companies offering such solutions include NICE Ltd. (Actimize), and Bloomberg Vault. 

Cloud based trade surveillance systems are gaining popularity as it enables firms to analyse their trade surveillance data faster by ingesting, mapping, and indexing data from across multiple sources in near real-time. Companies such as Nasdaq, Inc. and NICE Ltd. are modernising through cloud-deployed solutions.

Players are adopting advanced technologies, including artificial intelligence (AI), machine learning (ML), robotics process automation (RPA), natural language processing (NLP), and advanced behavioral analytics to minimise false positives and enhance regulatory compliance. 

The demand for 360-degree surveillance systems is growing due to the complex regulatory requirement and increasing instances of trade malpractices. These systems provide real-time analytics on market activity, sentiment, and trading behaviour across multiple client lifecycle touchpoints. 

Financial markets face significant failures and substantial losses due to various factors, including rogue traders. These incidents have prompted the development of stricter regulations, such as Reg BI, MAR, MiFID II, Dodd-Frank, and the Code of Conduct, along with guidelines from regulatory bodies like the CFTC, SEC, FINRA, and ESMA, as well as national regulations in various countries. These measures aim to detect trading activities that undermine public confidence in the markets. The growing emphasis on ensuring compliance with these regulations is a key driver behind the growth of trade surveillance system market.

The Financial Industry Regulatory Authority (FINRA)’s Rule 3110 outlines the requirements for broker-dealers to implement and maintain a system of supervisory control policies and procedures that are reasonably designed to ensure compliance with applicable securities laws, regulations, and the firm’s internal policies and procedures. Additionally, FINRA Rule 3120 mandates that broker-dealers conduct an annual review of their supervisory control system to evaluate its adequacy. 

In 2023, globally, banks faced USD 442 billion in projected losses from payments, check and credit card fraud. Check fraud losses in the Americas represented about 80% of total check fraud losses globally last year, underscoring the growing problem of check fraud in the U.S.

Trade Surveillance System Market Growth

Growing complexities of global and regional regulations, data security, and privacy issues continue to impact the adoption of cloud based trade surveillance systems. In February 2024, Deutsche Bank adopted managed services such as Dataproc and BigQuery from Google Cloud in their new architecture for trade surveillance. 

Trade surveillance and monitoring solutions offers optimum integration of in-house data and external trading data. The New York Stock Exchange on an average trade around USD 18.9 billion per day. 

Financial firms in trade surveillance system market are increasingly adopting a proactive model to identify new profiles and risk indicators before market abuse takes place. The systems use advanced data mining and unsupervised machine learning. Organisations are adopting an integrated approach that combines investigative, reactive, and proactive surveillance capabilities. 

There is a growing demand for trade surveillance systems that can analyse trading activity across multiple asset classes simultaneously. Prominent companies providing such systems include Trading Technologies International, Inc., Eventus Systems Inc, and Broadridge Financial Solutions, Inc.

Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Purchase the Regional Overview for USD 1099

If you choose to purchase the full report at a later stage, the amount already paid will be adjusted, and you will only need to pay the remaining balance.

Key Trends and Developments

Trade Surveillance System Market Trends

As regulatory complexities grow, financial institutions are replacing legacy systems with advanced trade surveillance solutions to meet compliance requirements and enhance proactive monitoring, thus impacting the trade surveillance system market revenue. Shifting trade patterns and stricter regulations like Reg BI, Markets in Financial Instruments Directive (MiFID II), and Dodd-Frank are driving buy-side firms, to adopt these systems. Regulatory bodies such as the Commodity Futures Trading Commission (CFTC), U.S. Securities and Exchange Commission (SEC), Financial Industry Regulatory Authority (FINRA), European Securities and Markets Authority (ESMA), and Financial Conduct Authority (FCA) are further accelerating adoption. Compliance helps mitigate trading risks, protect reputations, and restore investor trust, while noncompliance exposes firms to penalties and market abuse risks.

Businesses are increasingly adopting a proactive approach to trade surveillance, investing in advanced solutions to stay ahead of emerging compliance requirements. Technology is set to be a transformative force in the trade surveillance industry. Progressive organizations are already utilizing technology-driven surveillance systems to maintain compliance with evolving regulations and navigate the growing complexity of financial markets.

Trade Surveillance System Market Opportunities

Financial organisations are exploring various financial data analytics approaches for faster and more accurate trade surveillance. Cloud-based data management solutions offer scalability, real-time processing, and ease of integration with Artificial Intelligence/Machine Learning-based solutions. A cloud-centric trade surveillance system streamlines the process of ingesting large volumes of trade data into cloud storage solutions like Amazon S3, Google Cloud Storage, or Azure Blob Storage, enabling efficient scalability to handle varying data volumes, accelerating the trade surveillance system market expansion.

Machine learning and generative AI offer enhanced trade surveillance by addressing dissatisfaction with inflexible, off-the-shelf models. Generative AI enables code generation from verbal descriptions, allowing companies to improve surveillance with minimal coding experience. Machine learning also reduces false positives, lowers maintenance and setup costs, and minimizes human bias in setting thresholds and assessing alerts.

Trade Surveillance System Market Restraints

Cloud-based offerings are primarily delivered to customers through leased network connectivity lines and co-location space, which form the backbone of the provider’s dedicated network. Should any of these suppliers be unable or unwilling to maintain or expand their service levels, the services provided to customers may be negatively impacted, potentially leading to customer dissatisfaction and operational disruptions. Additionally, any price increases from these suppliers could have a detrimental effect on the provider's operations if they are unable to pass these cost increases onto customers.

Given the growing amount of trading data, the trade surveillance system could accidentally flag activity as being non-compliant when it is actually not resulting in a false positive, hindering the trade surveillance system market growth. If two separate, unrelated traders engage in buying and selling the same security simultaneously, it’s likely just coincidental and not necessarily market manipulation. However, the trade surveillance system may flag this for review, prompting the compliance department to investigate further, resulting in a time-consuming process. 

Trade Surveillance System Industry Segmentation

Trade Surveillance System Market Share

Market Analysis by Component

The growing demand for institutional-grade surveillance solutions in the cryptocurrency market is driven by regulatory changes. In Dec 2024, Kaiko and Trillium partnered to offer integrated tools, combining surveillance with quality data for enhanced fraud detection.

Further, players in the trade surveillance system market are leveraging AI technology in order further improve their visibility in the market. Nasdaq's new AI-powered feature launched in May 2024, enhances investigation efficiency, reduces time by 33%, and improves market integrity. This trend signals a shift towards automated, AI-driven surveillance solutions.

The increasing volatility and fraudulent activities in the cryptocurrency market have prompted South Korea’s Financial Supervisory Service to introduce a 24-hour surveillance network in July 2024 to monitor crypto transactions and enforce new regulations under the Digital Asset User Protection Act reflecting a growing global shift towards stricter regulatory frameworks.

The growing reliance on AI/ML analytics for detecting market manipulation and insider trading risks is driving innovation. In June 2024, Trading Technologies launched TT Trade Surveillance, enhancing compliance with 47 machine learning-driven models to detect insider trading and reinforce market integrity.

Increasing digital financial transactions necessitate robust monitoring tools with digitally delivered financial service exports growing from USD 533,999 million in 2019 to USD 678,841 million in 2023, highlighting increasing reliance on advanced trade surveillance systems to ensure compliance, detect fraud, and manage risks.

Growing financial fraud incidents have driven accelerated investments in surveillance services. In the UK, fraud complaints rose sharply, from 6,094 in Q1 2023 to 8,734 in Q1 2024, over half involving APP scams, boosting demand for trade surveillance services.

Market Analysis by Deployment Type

The shift toward SaaS-based models to address dynamic compliance needs is accelerating. Oracle's FCCM Management Monitor Cloud Service, announced in September 2024, provides centralised risk management, granular AML compliance reporting, and proactive fraud detection. This strengthens financial institutions’ ability to streamline workflows, reduce compliance costs, and enhance trade surveillance system market.

The growing adoption of AI-driven, multilayered analytics in transaction monitoring systems is exemplified by NICE Actimize’s SAM-10 solution. By incorporating machine learning for anomaly detection and network risk analytics, it enhances suspicious activity detection, reduces false positives, and strengthens regulatory compliance. Its flexible deployment options, both on-premises and SaaS, make it adaptable for various financial institutions.

Market Analysis by Organisation Size

As per the trade surveillance system market analysis, growing compliance budgets and regulatory mandates drive the demand for advanced trade surveillance solutions. To meet these demands, Eventus and Abaxx Technologies partnered to equip Abaxx Exchange with the Validus platform, ensuring robust market integrity as it launches its commodity-focused marketplace, underscoring the growing need for scalable compliance solutions in high-volume trading environments.

There is a growing deployment of cloud-based solution by large enterprises due to its ability to offer scalability and long-term cost effectiveness. Deutsche Bank’s collaboration with Google in February 2024 highlights this trend. By leveraging Google Cloud’s BigQuery and Dataproc, the bank enhances efficiency, reduces false positives, and enables scalable trade surveillance while ensuring seamless data access across teams without duplication.

Market Analysis by Vertical

The ongoing digital banking transformation and financial crime mitigation efforts are driving the adoption of transaction monitoring technologies. In July 2024, ABN Amro implemented CBA’s IBAS software to automate trade finance and detect suspicious activity.

Financial institutions are investing in proprietary trade surveillance solutions to meet regulations and combat financial crimes, positively impacting the trade surveillance system market. In September 2024, Sunwest Bank’s launch of FOCSS, an advanced in-house compliance platform, reflects this trend, enhancing cross-border transaction monitoring and fraud prevention.

The growing threat of cross-product market manipulation presents a significant challenge to compliance departments in capital markets. In August 2024, SteelEye launched Cross-Product Detection, leveraging advanced algorithms to identify suspicious trading patterns across instruments and address potential market abuse.

The rising transaction volumes and diverse investment products are driving the demand for advanced market surveillance systems. The Stock Exchange of Thailand launched a Nasdaq-powered market surveillance system to enhance monitoring capabilities and manage increasing trading complexities.

The growing regulatory focus on enhancing surveillance within AMCs is pushing the market. India’s regulatory body, SEBI’s recent circular, requires advanced surveillance systems, internal controls, and escalation processes to detect market abuse.

Further, the increasing use of AI and machine learning for fraud prevention is accelerating the adoption of advanced surveillance systems across sectors. The U.S. Treasury leveraged these technologies to prevent and recover over USD 4 billion in fraudulent payments in FY 2024.

Trade Surveillance System Market Regional Insights

North America Trade Surveillance System Market Opportunities

According to UN, about USD 300 billion is laundered each year in the United States while 5% of all digital transactions originating from Canada were suspected to be fraudulent in 2023.

According to Federal Trade Commission data, in 2023, consumers in the United States reported losing over USD 10 billion to fraud. This represents an increase of 14% over reported losses in 2022. This will subsequently increase the demand of trade surveillance system market.

Moreover, in the United States, imposter scams are the most common single type of financial fraud or theft. The United States has financial crimes enforcement network (FinCEN), that provides information on U.S. anti-money laundering and counter-terrorism financing regulations. Some of the regulations include The Bank Secrecy Act, The AML Act and the CTA, among others

CIRO oversees all equity market activity across Canadian marketplaces, including stock exchanges and alternative trading systems. Recently, it has expanded to oversee the surveillance of trading on CIRO registered crypto marketplaces.

Moreover, in January 2022, a MoU between the Investment Industry Regulatory Organization of Canada (“IIROC”) and Bourse de Montréal Inc was signed that focused on increasing collaboration, thus, allowing for cross-market surveillance.

Europe Trade Surveillance System Market Dynamics

The EU has the presence of several regulations for handling fraud and corruption, including The Convention on the protection of the European Communities financial interests, OLAF, and EPPO.

There is a growing focus by market institutions on equipping teams with the expertise needed to combat manipulation schemes across diverse venues, products, and asset classes,

To tap into the opportunity, Solidus Labs, launched the first-of-its-kind Trade Surveillance Academy (TSA), a publicly available training program designed to address the knowledge gap in the emerging field of trade surveillance in January 2025, supporting the trade surveillance system market.

In October 2023, the Federal Cabinet approved the draft of the Financial Crime Combating Act (FKBG), aimed at enhancing efforts to combat financial crime, particularly money laundering. It is estimated that approximately USD 108.22 billion are laundered in Germany annually, with the police recording 22,614 cases of money laundering in 2022 alone.

Asia Pacific Trade Surveillance System Market Trends

Countries in the region, such as Japan, Australia, and Singapore, have regulatory frameworks for market surveillance. Authorities like FSA in Japan AISC in Australia and MAS in Singapore oversee trading activities and ensure adherence to regulations, further supporting the trade surveillance system market development.

During 2021 to 2023, China Securities Regulatory Commission (CSRC), handled a total of 397 cases of illegal information disclosure, including 203 cases of financial fraud.

In July 2024, China’s State Council released a guideline to prevent financial fraud in the capital market and safeguard the market ecology. As per the guideline, financial fraud in critical sectors must be effectively addressed and prohibited.

The Securities and Exchange Surveillance Commission (SESC) is responsible for collecting and analyzing suspicious transaction data that may be linked to market misconduct, including insider trading, market manipulation, and fraudulent activities. The organization carries out close relationships with the surveillance divisions of self-regulatory organisations to share information. 

In 2022, the SESC and local finance bureaus recorded 29 market manipulation cases, and 12 other activities such as use of fraudulent means. 

Latin America Trade Surveillance System Market Insights

In December 2024, the Brazilian Central Bank and CVM introduced a resolution to simplify market rules for foreign investors, thus enhancing transparency in capital markets. Furthermore, the total cost of financial crime compliance in Latin America reached USD 15 billion in 2024.

According to the trade surveillance system market report, in 2023, BSM, the Brazilian stock exchange B3’s self-regulatory arm, implemented strict market operations monitoring guidelines, requiring all brokerages in Brazil to implement and manage their own trade surveillance system.

To support the above guidelines, in August 2024 Eventus, a provider of trade surveillance and financial risk solutions, has partnered with ANCORD, Brazil’s National Association of Securities Brokers, to offer its Validus platform to ANCORD members.

To strengthen financial regulations, Mexico enacted significant amendments to the Securities Market Law, focusing on sustainable development policies in December 2023. The reform seeks to simplify and expedite the process for companies to go public and boost financial inclusion of SMEs through stock market.

Additionally, to combat increasing unfair market practices, In December 2024, Mexico's antitrust regulator Cofece fined Walmex USD 4.6 million for monopolistic practices.

Middle East and Africa Trade Surveillance System Market Drivers

Banks are raising awareness about code of conduct providing guiding principles for firms to follow and ensure fair trade practices. Africa is home to a total of 29 stock exchanges with a combined market capitalisation of around USD 1.6 trillion.

As per the trade surveillance system market report, Saudi Arabia is experiencing rapid growth across the financial services sector as it reduces economic dependency on the oil industry, thus leading to heightened focus on ethics, compliance, and conflict-of-interest management in the region.

Financial institutions in Saudi Arabia are increasingly adopting advanced trade surveillance systems to enhance their monitoring capabilities. For instance, a leading Saudi Arabian bank implemented Verint's surveillance solutions to capture, monitor, and store transaction-related communications, thereby strengthening compliance with AML policies.

South Africa is actively enhancing its trade surveillance mechanisms to ensure market integrity and compliance within its financial sector. In August 2024, the South African financial sector unveiled a Draft Code of Conduct aimed at strengthening market surveillance. This code outlines ethical, fair, transparent, and responsible conduct for exchange members, promoting the integrity and proper functioning of South Africa’s financial markets. 

Additionally, this initiative specifically aims to bolster local financial services sector in the country and boost trade surveillance system demand growth. 

Competitive Landscape

Other key players in the global trade surveillance system market are ACA Compliance Group, OneMarketData, LLC, Nasdaq, Inc, Software AG, Sia Partners, Verint Systems Inc, – b-next holding AG, TradingHub Group Limited, Scila AB, and FIS Inc, among others.

Trade Surveillance System Market Report Snapshots

Trade Surveillance System Market Size

Trade Surveillance System Market Growth

Trade Surveillance System Market Analysis

Trade Surveillance System Market Share

Trade Surveillance System Companies