Globally, securities regulators are increasingly relying on technology to help power their oversight of the securities markets and the industry, but their aspirations to adopt the most cutting-edge tools are being thwarted by budget constraints and other limitations, according to a report from the International Organization of Securities Commissions (IOSCO).
On Thursday, the umbrella group of global regulators published a report detailing the findings of a survey of 49 regulators across the world, which was carried out in 2025 and examined the use of so-called “supervisory technology” (SupTech) tools to assist with market supervision and regulatory oversight.
“The survey results indicate that authorities across jurisdictions and market types have moved beyond experimentation,” the report said.
“SupTech is no longer seen as a niche initiative but is becoming an embedded feature of supervisory frameworks. Strategic leadership, dedicated budgets, and cross-functional teams point to a shift toward mainstreaming technology in the regulatory core.”
Yet, the survey also indicated that, at this point, the regulators’ SupTech ambitions are often exceeding their grasp.
Among other things, the survey found that regulators are primarily using “mid-level technologies,” supported by transaction data and traditional fraud detection tools.
Additionally, while the regulators want to deploy higher-tech tools, such as advanced analytics and AI models, the survey found that “funding gaps are slowing progress” — and that resource constraints and cybersecurity risks still represent “significant barriers for further SupTech adoption overall.”
Alongside the resource limitations, the report highlighted the need for regulators to develop their own workforces to enable the efficient adoption of SupTech tools.
Currently, regulators are typically hiring externally, rather than building their internal capacity to integrate SupTech tools, it noted.
Future progress on the adoption of SupTech tools “will depend on scaling what works while enabling innovation in frontier areas,” the report said.
“This report highlights both the progress made and the challenges that remain, particularly in the areas of data, cybersecurity, skills and funding,” said Marlene Amstad, chair of IOSCO’s SupTech Forum and chair of the Swiss Financial Market Supervisory Authority, in a release.
“It also sheds light on the opportunities ahead and the potential for technology to further strengthen the effectiveness and efficiency of supervision.”