Welcome to the April edition of The Monitor.
Q2 is in full swing, and many of the conversations we’re having with trading and compliance leaders show just how much change is accelerating across the market. Prediction markets remain a major focus, global developments are driving sudden shifts in trading activity, and markets continue moving toward more continuous trading models.
Another theme coming up more often is the importance of a clean data foundation. Firms are recognizing that strong oversight starts with high-quality, connected data. They’re also looking for opportunities to make their trade data go further across surveillance, best execution, and broader oversight priorities.
Recent events like STANY’s 90th annual conference and FIA Law & Compliance reinforced many of the same conversations. Firms are asking how oversight frameworks adapt to new products, faster markets, and growing regulatory attention. They are also looking for technology that helps teams respond with greater clarity, speed, and confidence.
In this month’s Monitor, we share what we are watching most closely and what it may mean for your team. We cover recent developments in prediction markets including a snippet from our newly released Perspective on early lessons from market participants, regulatory signals shaping oversight expectations, and why more firms are looking for more timely best execution insights. We hope this issue helps you navigate what’s next.
— Lisa Balter Saacks
President, Trillium Surveyor
Surveyor Product Perspective
Turning Trade Data Into Daily Insight
We began by building best-in-class trade surveillance. As we worked with clients, it became clear that this same trade data could create value beyond compliance. Best execution analytics was the natural next step.
Too often, best execution is treated as a periodic reporting exercise. We see it differently. Firms increasingly want timely, actionable insight they can use to evaluate performance, support oversight, and make better decisions over time.
That starts with clean, normalized trade data. When data is standardized across venues, order types, and workflows, teams can spend less time preparing reports and more time generating insights. With built-in calculations, visuals, and automated analytics, firms can quickly measure execution quality, identify outliers, review venue and routing trends, and respond faster as conditions change.
As markets become faster and more complex, firms are looking for analytics purpose-built for today’s trading environments.
Surveyor Best Ex Features:
- Daily analytics that replace manual review cycles
- Built-in calculations and visuals that save time and reduce manual effort
- Measurement of price, speed, cost, and probability of execution
- Support for 605/606 reporting requirements
- A shared data foundation across best execution and surveillance for more explainable context
If you’d like to see these capabilities in action, we’d be happy to schedule time to connect.
Regulatory Radar
- CFTC Reinforces Authority Over Prediction Markets: Recent court rulings and ongoing policy debates continue to strengthen the CFTC’s role as the primary regulator for certain prediction markets. As federal oversight becomes more established, firms have a clearer path to evaluate surveillance, market integrity, and compliance requirements in this evolving space. (Source: LSR)
- Best Execution Is Moving Beyond Periodic Review: FINRA’s 2026 Annual Regulatory Oversight Report continues to emphasize regular and rigorous reviews of execution quality, routing decisions, and customer order handling practices. Many firms are looking for more frequent insight rather than periodic reviews alone. (Source: FINRA)
- SEC Action Highlights Importance of Follow-Through: The SEC charged Canaccord Genuity over failures tied to suspicious activity monitoring in low-priced OTC securities. The case is a reminder that effective surveillance depends not only on alert design, but on consistent review, escalation, and documentation. (Source: SEC)
- 24/5 Trading Puts Oversight Models to the Test: With exchanges, clearing infrastructure, and trade reporting systems preparing for longer trading hours, firms are evaluating whether surveillance and execution oversight can operate consistently outside traditional sessions. (Source: FINRA)
Market Structure and Compliance Trends
Prediction Markets: Early Lessons for Firms
We recently published a new Perspective on prediction markets and the early lessons firms should be thinking about as the space evolves. Here is a short excerpt from the piece:
In the summer of 2026, the FIFA World Cup will be one of the most watched events in the world. It will also be one of the most visible moments yet for prediction markets.
Once niche, these markets are scaling rapidly across sports, political, and economic events, drawing both retail and institutional attention along the way. Monthly trading volume surged from under $100 million in early 2024 to more than $20 billion in 2026, with recent months reaching approximately $22-23 billion across major platforms according to reporting from Dune Analytics.
For market operators, broker dealers, and other trading firms evaluating entry, the opportunity is clear. Early participation offers the chance to shape market structure, capture client demand, and establish a durable competitive position in a fast-growing segment — provided firms enter with governance, monitoring, and risk controls capable of withstanding scrutiny. As participation expands, firms are finding that entry into prediction markets also fundamentally changes what they are expected to understand and explain about trading activity.
This reflects a defining feature of prediction markets: these event-driven contracts are inherently visible. Event outcomes are public, and trading activity can be replayed once resolution occurs. Questions about timing, concentration, and information context can surface quickly, often before firms have fully contextualized the activity. In this environment, oversight expectations are forming in real time rather than after standards are finalized.
This expansion is unfolding while the regulatory landscape remains unsettled. The Commodity Futures Trading Commission (CFTC) asserts federal oversight over event contracts structured as derivatives, even as certain state regulators continue to raise questions rooted in gambling law. Jurisdiction is still debated as participation accelerates, and firms cannot wait for a clean resolution before making decisions about how to structure participation.
In prediction markets, scrutiny does not wait.
Interested in insights from the full perspective? Read the complete piece here.
Poll
Markets are evolving quickly and many firms are evaluating where new opportunities fit within their trading, compliance, and technology strategy. Whether it’s new products, longer trading hours, or operational efficiency, each shift brings new considerations for surveillance, best execution, and oversight.
What area is your firm exploring most right now?
- Prediction markets
- 24/5 trading
- Tokenization
- AI and automation
Participate in the poll here.
Our Social Calendar
STANY’s 90th Annual Conference
Our team enjoyed the short commute to the NYSE to attend STANY and connect and learn alongside other leaders across the industry. Our favorite conversations were around evolving market structure, oversight expectations, and where markets are headed next.
FIA Law & Compliance
We were proud to sponsor FIA Law & Compliance. We also enjoyed hosting a great dinner for our clients and broader community, and hope you had a chance to stop by Booth 2 for our limited-edition Caution: Do Not Wash socks and some great conversation around regulatory change, surveillance readiness, and market integrity.
Coming Up
TabbFORUM ATSs & Off-Exchange Trading Symposium 2026 – NYC (April 27)
Our President, Lisa Balter Saacks, will be attending the TabbFORUM ATSs & Off-Exchange Trading Symposium, where institutions, traders, and market structure leaders will discuss ATS innovation, off-exchange trading trends, and the regulatory developments shaping the future of these markets.
If you’ll be attending and would like to connect with Lisa for a 1:1 discussion, we’d welcome the opportunity to meet.
NSCP Interactive Lab – Chicago (May 5)
We’re excited to sponsor the NSCP Interactive Lab in Chicago, where compliance professionals will take part in hands-on sessions focused on compliance oversight, supervisory controls, and practical testing of compliance programs. It’s a great fit for the conversations we’re having with firms around modernizing oversight, strengthening controls, and using technology to make compliance programs more effective.
FINRA Annual Conference 2026 – Washington, DC (May 12-14)
We’re also looking forward to the FINRA Annual Conference and continuing conversations around modern oversight, surveillance, and best execution.
Didn’t get a chance to meet the Surveyor team in person? We’d be happy to connect at an upcoming event or schedule time virtually. Reply directly to this newsletter or contact us here.
Let’s Connect!
Let’s discuss how your team can stay ready as markets evolve and oversight expectations grow. Set up a brief time to chat here.
