Cross-border compliance is a challenge for 74%, eflow study finds

Rick Steves

“On one hand, bad actors are exploiting technological advancements to bypass regulatory measures, while on the other, regulatory bodies are leveraging technology to uphold industry stability. Within this dynamic landscape, businesses need to equip themselves with the most effective tools to remain compliant.”

UK-based regtech firm, eflow Global, unveiled a comprehensive report highlighting the significant challenges regulated firms face in the UK, North America, Europe, and Asia Pacific, stemming from evolving regulations and global market instabilities.

Titled “Global Trends in Market Abuse and Trade Surveillance, the report draws on insights from 250 senior compliance professionals and identifies three key themes impacting the regulatory landscape: global shocks, market evolution, and convergence.

AI and geopolitics driving compliance issues

Global shocks such as the pandemic, supply chain disruptions, geopolitical conflicts, an inflation crisis, banking sector turmoil, and the advent of artificial intelligence (AI) and digital assets have reshaped the terrain of market abuse and regulation. Notably, global instability and the use of AI are seen as the primary drivers of compliance issues in the coming year.

The report also sheds light on the difficulties of cross-border compliance, with 74% of firms acknowledging it as a challenge and 60% struggling to adapt to evolving regulations. In response, 90% of compliance managers are seeking to invest in borderless technology solutions to address these challenges.

The report concludes that nearly all compliance professionals (96%) plan to invest in technology to address future compliance issues. With the financial sector becoming more transparent and regulatory pressure increasing, the demand for innovative solutions to navigate the complex, interconnected global market is more critical than ever.

“Bad actors are exploiting technological advancements to bypass regulatory measures”

Ben Parker, CEO and Founder of eflow Global, commented: “In recent years, the financial sector has undergone significant transformation, necessitating the adoption of innovative tools by businesses to address them. Central to these changes is the role of technology. On one hand, bad actors are exploiting technological advancements to bypass regulatory measures, while on the other, regulatory bodies are leveraging technology to uphold industry stability. Within this dynamic landscape, businesses need to equip themselves with the most effective tools to remain compliant.”

Dr. Sian Lewin, an expert in regulation, risk & RegTech, said: “The modern financial landscape is becoming ever-more digitized and interconnected, leading to the accelerated adoption of technology, increasing data-led regulatory scrutiny, and a greater need for global collaboration. This has fundamentally transformed market dynamics, information flow, and the nature of market abuse. This intricate web demands a re-evaluation of how participants engage and combat misconduct.”

TS Imagine integrated with eflow

eflow Global has been expanding its footprint by partnering with leading industry names, including TS Imagine, which a few months ago integrated the regtech solution into its cross-asset provider of trading, portfolio, and risk management platform.

This strategic partnership will not only help mutual clients meet regulatory obligations but also enable them to proactively safeguard against market abuse and monitor communications effectively.

One of the key areas set to benefit from this collaboration is TS Imagine’s TradeSmart OEMS (Order Execution Management System) product. The integration with eflow’s solutions will extend across all asset classes, creating a comprehensive and streamlined workflow for users.

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