Core Viewpoint - The global trade monitoring sector is undergoing significant transformation, evolving from a compliance-driven function to a dynamic, data-driven discipline that impacts business operations [1][2]. Group 1: Evolution of Compliance and Monitoring - Compliance and monitoring functions are transitioning into strategic advisors for risk management, becoming integral to understanding markets, managing data, and controlling risks [2]. - Nearly half of forex companies view trade monitoring and preventing market abuse as key areas for managing or reducing risk exposure, indicating a shift in compliance's role within organizations [2]. - Compliance is now embedded in various business functions, with professionals at all levels taking on more monitoring and risk responsibilities [2][3]. Group 2: Influence of Compliance in Decision-Making - A survey during the LSEG webinar revealed that most participants believe compliance teams now have greater influence in corporate decision-making processes, reflecting a cultural shift where compliance is seen as a driver of business development rather than a hindrance [3][6]. Group 3: Key Drivers of Monitoring Landscape - The monitoring landscape is influenced by three key drivers: 1. Explosive growth in data volume, with market trading volumes and reporting expected to reach historical highs by 2025 [7]. 2. Evolving regulatory requirements, with stricter expectations from regulators regarding data governance and operational resilience [9]. 3. Increasing complexity of market structures, necessitating advanced analytical technologies and unified data sources for effective monitoring [10]. Group 4: Challenges in Trade Monitoring - A significant challenge in trade monitoring is the prevalence of false positives generated by monitoring tools, which can overwhelm teams with irrelevant information [12]. - Companies are encouraged to adopt a tactical approach by utilizing regulatory datasets designed for market abuse detection and calibrating alert mechanisms to capture extreme behaviors [12][13]. Group 5: Role of AI and Innovation - Advances in AI and natural language processing are enabling companies to shift from reactive detection to proactive prevention, allowing for real-time behavior correction [15][16]. - Some companies are deploying AI solutions to educate employees in real-time during potentially inappropriate conversations, marking a new phase in monitoring that emphasizes proactive compliance [16]. Group 6: Integration of Trade and Communication Monitoring - The integration of trade monitoring with communication monitoring is becoming increasingly important, as communication can reveal intentions not reflected in trade data [17]. - LSEG collaborates with Global Relay to provide a unified compliance archiving solution that integrates communication monitoring data from various sources, enhancing the ability to respond to regulatory inquiries [17][18]. Group 7: Conclusion on Monitoring's Role - Monitoring has evolved from a backend burden to a forefront discipline in risk management and organizational culture, offering significant competitive advantages when leveraged effectively [18].