Transforming trade surveillance
A new model for accelerated growth in the algorithmic era
Traditional, compliance-driven surveillance is failing to keep pace with modern algorithmic markets. The result is a flood of false alerts, missed signals, and rising costs. It’s time for a new approach.
The future is embedding adaptive, context-aware controls directly within the business. By empowering the front office to build and operate its own controls, firms can transform surveillance from a reactive cost center into a proactive driver of growth and competitive advantage.
The challenge: why today's surveillance is broken
Legacy surveillance frameworks were designed for human traders, not algorithms. This mismatch creates systemic failures that hinder growth and increase risk.
- Outdated systems: Frameworks built for discretionary decisions misfire when applied to algorithms, creating a constant stream of false positives while true market manipulation slips by undetected.
- Siloed ownership: With compliance owning the systems, they often lack the deep technical and business context of the front office, leading to endless, inefficient escalation loops.
- Mounting costs & risks: The combination of a talent gap, inadequate technology, and incomplete data coverage results in a costly and ineffective surveillance model that erodes trust with regulators and clients.
The benefits of transformation
Integrating surveillance with your business turns a defensive necessity into a strategic asset.
- Accelerate business growth: Onboard new clients, products, and venues faster.
- Lower cost of ownership: Drastically reduce false positives and costly remediation efforts.
- Enhance client service: Use trade and communications data as a source of business intelligence to improve client outcomes.
- Build regulatory trust: Create transparent, explainable, and auditable frameworks.
- Improve data integrity: Ensure broader, more reliable data coverage across all products and venues.
How KPMG can help
Achieving this future state requires a coordinated transformation of strategy, architecture, and governance. KPMG is uniquely positioned to guide your firm through this journey.
- Strategy & diagnostics: We assess your current state and design a multiyear transformation roadmap.
- Regulatory alignment: We help you proactively engage with regulators to frame the new model and ensure controls meet all mandates.
- Architecture & implementation: We help redesign ownership structures and build the resilient data pipelines needed for real-time surveillance.
- AI enablement: We deploy AI frameworks, including Generative AI, to create adaptive, business-aware controls and streamline workflows.
- Governance & change management: We help establish new ownership models and upskill your teams to ensure long-term success.
Build the future of surveillance
Yesterday's systems cannot govern tomorrow's markets. Firms that embed controls directly into their business will gain a decisive competitive advantage. Now is the time to innovate.
Dive into our thinking:
Transforming trade surveillance
Ready to dive deeper into the business-embedded operating model? Download our complete guide to transforming trade surveillance in the algorithmic era.
Download PDFMeet the team
