The costs of surveillance and compliance systems for brokers, exchanges and multilateral trading facilities are expected to reach Eu185m by 2012, according to a report by Tabb Group, the research firm.
The figures show surveillance spending —
which grew rapidly because of the need for compliance with the
EU’s Markets in Financial Instruments Directive
(MiFID), introduced in 2007 — will climb 13% between
2009 and 2012 as outsourcing becomes more common. The
report’s author Miranda Mizen said: "The ratio of
internal versus external purchases will decline from 70% in
2009 to 53% in 2012."
Mizen believes effective market surveillance is
becoming a source of competitive edge for firms. She said
surveillance needs have changed dramatically and that a single
stock that used to trade on three venues might now trade on as
many as 15.
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