2025 - The Future of Market Abuse Surveillance - Delivering cost-effective, outcomes-based Comms surveillance

by Graham Ure Partner, PwC UK

Email +44 (0)7889 644672

by Georgia Denning Senior Manager, PwC UK

Email +44 (0)7802 658945

Depending on the strategy adopted, Comms surveillance can be the most resource-intensive element of a surveillance programme. With these programmes often generating alerts in the hundreds of thousands annually, the industry remains on a continuous search for a more effective, yet efficient, monitoring solution.

In recent years, this has manifested in the adoption of natural language processing (NLP) techniques to supplement or, in some cases, replace the traditional lexicon-based approach. NLP technology has been hailed as the potential answer to conventional e-comms surveillance woes, promising fewer alerts, flexibility to build and deploy new models in-house, and critically to identify more true positives.

Technological advances have been welcome but remain a work in progress. Delivering on effective surveillance and the move to a reduced reliance on traditional lexicon-based approaches can be a more complex undertaking than initially anticipated.

Perhaps as importantly predicted cost savings can be slow to materialise. In our Future of Market Abuse Surveillance publication, we set out a fictional view of the future where Comms surveillance has been outsourced. This outsourcing consists of a managed service solution for first level alert review and the implementation of an enhanced technology solution with support from a managed service provider who then took primary responsibility for maintaining and optimising the solution.

Within this vision of the future, the transition to an outsourced model for Comms surveillance delivered a significant simplification of the operating model, reduced overall headcount and enabled a focus on higher-impact activities, including the development of more effective detection capabilities.

While the fictional vision of surveillance we have set out in our paper is just one possible future, operating models will continue to evolve as organisations seek the dual benefits of attaining more effective surveillance at a lower operating cost.

Download our ‘2025 - The Future of Market Abuse Surveillance’ publication for more in-depth analysis of this theme and others relating to the evolution of surveillance.

by Graham Ure Partner, PwC UK

Email +44 (0)7889 644672

by Georgia Denning Senior Manager, PwC UK

Email +44 (0)7802 658945

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