On 19 February 2025, the International Organization of Securities Commissions (IOSCO) issued a final report setting out its findings following a thematic review of its recommendations from the 2013 report ‘IOSCO Report Technological Challenges to Effective Market Surveillance: Issues and Regulatory Tools’.

In summary, most market authorities have implemented the recommendations and have made significant progress in addressing technological challenges to market surveillance, particularly in more complex markets. However, some issues of concern were identified, noting that some regulators lack the necessary organizational and technical capabilities to conduct effective surveillance of their markets amid rapid technological developments. In addition, most market authorities have not mapped their cross-border surveillance capabilities with regards to the interlinkage between domestic markets and those abroad.

Market surveillance will remain a challenge, and jurisdictions should review the final report, and the issues of concern highlighted in it. Jurisdictions with less-complex markets (for example, single venue, low trading volumes, absence of algorithmic trading and high frequency trading) should periodically review developments in their markets to assess whether changes in market conditions or behaviour require strengthening of market surveillance capability or capacity.

Laurent van Burik, Chair of IOSCO’s Assessment Committee, said: “Market surveillance has made significant improvements over the years in different jurisdictions, yet the challenge of addressing market abuse remains significant for market authorities, especially in the wake of rapid technological advances. IOSCO members should ensure that they have adequate and up-to-date powers, tools, and resources for effective market surveillance.”