eflow Global CEO warns firms of “compliance complacency” as firms struggle to keep up with market abuse regulations, research reveals
● 63% of global regulatory leaders say it is easy to keep up with general regulatory changes despite almost half (49%) citing market abuse regulations as a pressing concern
● News comes as $1.84bn in financial penalties issued to firms in 2024 and volume of enforcement action has surged 260%
London, UK; 20th March 2025: Confidence among regulatory leaders may be masking deeper compliance vulnerabilities, as new data from eflow Global reveals that staying ahead of market abuse regulations remains a significant challenge for firms worldwide. While 63% of regulatory leaders say it is easy for their firm to stay up to date with general regulatory changes, nearly half (49%) cite keeping abreast of market abuse regulations as one of their most pressing concerns.
These insights were revealed in eflow Global’s recent survey of 300 senior regulatory professionals in the financial services industry across the UK, US, Europe, and APAC. The findings highlight a disparity between perceived regulatory confidence and the ability to tackle market abuse effectively. This disconnect is especially apparent in the UK, where 65% of regulatory leaders identify market abuse regulations as a top compliance challenge, compared to just 43% in the US.
Market abuse enforcement actions surge
In 2024, enforcement actions related to market abuse increased by an unprecedented 260%, underscoring the critical need for firms to prioritise this area. Key challenges identified by global regulatory leaders include detecting insider trading and market manipulation (46%), managing false positive alerts (43%), and configuring trade surveillance systems effectively (33%).
The survey also revealed that 37% of firms struggle to integrate trade and eComms surveillance, a critical step in achieving a holistic compliance strategy. From 2019 to 2024, global regulators issued $3.179 billion in fines for eComms surveillance failures alone.
Ben Parker, CEO at eflow Global, commented: “Firms are underestimating the scale of the challenge they face. The surge in enforcement actions highlights that regulators are not only ramping up their scrutiny but are also extending their focus beyond tier-one institutions to mid-market firms. Compliance complacency is a dangerous mindset – especially when it comes to market abuse regulations, where penalties can be severe and reputational damage is often irreparable. This recurring issue demands urgent attention, and firms must act now to reassess their approach to preventing market abuse.”
Opportunities for improvement
Despite these challenges, the report highlights pathways for firms to strengthen their compliance strategies. Over half (58%) of regulatory leaders call for greater transparency around regulator expectations and enforcement actions, while 48% believe closer collaboration between regulators and compliance teams would significantly improve compliance outcomes.
Parker added: “Our research underscores the desire of firms to work collaboratively with regulators to proactively identify instances of market abuse. Regulatory technology will play a fundamental role in achieving this goal and help firms to demonstrate the credibility of their approach to regulators.”
Further issues and findings are detailed in eflow Global’s Global Trends in Market Abuse and Trade Surveillance 2025 Report, available for download here.
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NOTES TO EDITORS
About eflow Global
Founded in 2004, eflow Global provides financial firms with technology solutions to help them comply with their regulatory requirements in a more streamlined, efficient and robust way. It offers award-winning solutions for market abuse surveillance, best execution, transaction-cost analysis, transaction reporting and eComms surveillance.
The company currently services over 130 clients across five continents, providing both buy-side and sell-side firms with highly configurable digital tools that are designed to keep them compliant and competitive in this ever-changing regulatory landscape. eflow’s regulatory solutions are delivered through a PATH, a unique digital ecosystem that offers the speed, convenience and efficiency of off-the-shelf software, combined with a level of customisation that is typically only associated with a bespoke platform.
