Compliance Spending To Grow 35 Percent By 2015, Says Aite

Aite Group estimates in a recent study that compliance technology spending is likely to grow by 35% from 2012 to 2015, with hosted solutions persisting as the preferred deployment option.

Aite predicts growing demand, particularly in the areas of mobile functionality, holistic solutions and communication channel coverage. Although not a primary growth driver, opportunities may also emerge in new geographies as certain markets experience changes in their trading environments and market structure. The challenges, meanwhile, mostly surround the problem of obtaining quality data and maintaining a dynamic platform.

Volume trends across asset classes and trading strategies have also added to the focus on increasingly sophisticated compliance technology, rendering a need for effective and flexible automation.

“The ongoing buy-versus-build debate and certain factors in client decision-making also play important roles in the future of the compliance technology industry,” added Danielle Tierney, analyst in Institutional Securities & Investments at Aite Group.

The study is based on Aite Group interviews with vendors as well as observations from demonstrations of actual platforms; it highlights key trends and requirements within the trade surveillance compliance technology market, and evaluates the features and capabilities of a sampling of leading vendors.