Who Benefits From a good Trade Surveillance System?

Nearly everybody understands what surveillance systems are in the modern world. Surveillance systems have become an essential part of our modern society because of the various kinds of threats. However, trade surveillance systems are quite unique and play a critical role in many agencies as well as to those who participate in the capital markets. To be more precise, the ones who benefit from these systems include companies involved in stock brokering, regulatory authorities as well as market analysts. Basically these types of surveillance systems are software solutions that assist in monitoring the activities of the market. The software primarily monitors the financial instruments trading besides checking if trading is conducted in accordance with the compliance of the capital markets.

For the capital market to operate efficiently and in a stable manner, it is important that relevant regulatory authorities regularly remain watchful of the market compliance of all the activities taking place in the market. There are three categories of groups that benefit from trade surveillance systems. They include:

1. Brokerage firms

Firms offering stock brokering services usually have a legal mandate that requires them to submit all the relevant details regarding the activities they execute over a given period of time. Nearly all brokerage firms are making use of electronic algorithms that make collation of information an extremely daunting task. To help ease these processes, brokerage firms need to invest in these surveillance systems.   

2. Regulatory bodies

The primary responsibilities of regulatory bodies are to ensure fair practice in the capital market at all times. It is an enormous responsibility because the financial market is a highly dynamic and a constantly active platform. What is more, the volume of data available in the financial market is highly staggering.  It is, therefore, essential for regulatory bodies to utilize effective tools as well as many people to track the same. Investing surveillance systems will help ease the complex nature of the agencies’ tasks.

3. Market analysts

Market analysts are typically focused on tracking the market activity constantly to be able to provide the best and most viable investment options to their customers. The increasing volumes of trade in the financial market within a short period of time are making analysts life miserable. The use of these surveillance systems goes along away in making the process less complicated and less time consuming. The information they obtain from these systems is extremely useful for them when they are advising their customers. 

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