Market Surveillance Systems for the Sell Side and the Buy Side

Slated for Growth
by Anshuman Jaswal, PhD, September 21, 2015
Product Trends/ Reviews
Global

Abstract

Demand for market surveillance systems in the last few years has been driven by regulations and compliance requirements for issues related to Benchmark Manipulation and similar transgressions. The onus is on market participants to ensure they keep tabs on their trading activities.

In the report Market Surveillance Systems for the Sell Side and the Buy Side, Celent covers the product offerings of eight of the leading vendors. Although many sell side firms are using surveillance systems to ensure that they meet regulatory requirements, the more sophisticated firms are hoping to get a holistic perspective of their internal data. These systems allow them to optimize their data management strategies and plug any holes in their systems and processes. For these firms, surveillance systems offer a means of testing their capabilities regularly through scenario-building and case management.

Regulation is a key driver, as expected. Other important drivers include the move to real-time surveillance, a growing emphasis on analysis of communications, and the analysis of big data.

This report analyzes the specific products of the leading surveillance vendors. It discusses some of the coverage areas for surveillance products across the leading vendors. While the focus of the various vendors differs, there is also a fair degree of overlap in what most of them seek to provide. This discussion is followed by an overview of the functionality on offer for the various leading market surveillance systems currently serving the needs of the sell side and the buy side. Finally, we consider the expected areas for future product development.

“Some of the differentiators included having open or flexible architecture, having the ability to offer the product as a cloud service, and the capability of the product to analyze the various types of structured and unstructured data related to trading platforms,” says Dr. Anshuman Jaswal, a senior analyst with Celent’s Securities & Investments practice and author of the report. “From the point of view of innovation and the requirement for more sophisticated systems and processes, sell side firms again dominate this space as a client segment.”

Celent is a research and advisory firm dedicated to helping financial institutions formulate comprehensive business and technology strategies. Celent publishes reports identifying trends and best practices in financial services technology and conducts consulting engagements for financial institutions looking to use technology to enhance existing business processes or launch new business strategies. With a team of internationally based analysts, Celent is uniquely positioned to offer strategic advice and market insights on a global basis. Celent is a member of the Oliver Wyman Group, which is part of Marsh & McLennan Companies [NYSE: MMC].

Media Contacts

North America
Michele Pace
mpace@celent.com
Tel: +1 212 345 1366

Europe (London)
Chris Williams
cwilliams@celent.com
Tel: +44 (0)782 448 3336

Asia (Tokyo)
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Table of Contents

Executive Summary

1

 

Key Research Questions

1

Introduction

2

 

Key Research Questions

3

Market Overview

4

Product Profiles

9

 

Ancoa

9

 

Cinnober Cinteq

12

 

Digital Reasoning Synthesys

13

 

Fonetic ATR integra

15

 

NASDAQ SMARTS

17

 

NICE Actimize

19

 

OneMarketData OneTick

23

 

Software AG

25

 

Summary of Expected Product Developments

28

Conclusion

29

Leveraging Celent’s Expertise

31

 

Support for Financial Institutions

31

 

Support for Vendors

31

Related Celent Research

32

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