T2S, the EU’s key infrastructure project to provide a pan-European platform for securities settlement, is well on its way to going live. And so is SIX Securities Services.
October edition of Radar – our industry-focused magazine
The October edition of Radar discusses what distributed ledger technologies have to offer the securities industry; how the securities industry can reconcile the need to provide comfort to regulators with a sustainable level of operational cost; and analyses the extent to which T2S will shape post-trade relations.
In the financial industry, changes are often influenced, if not dictated, by external pressures. At the mo-ment, a question that seems to be a common filter for all strategic decisions is, “How will it play with the regulators?”
The latest edition of Radar reflects on different industry responses to the ever building wave of global regulation, aimed not so much at activities broadly considered to be at the riskier end of the spectrum, but rather at those institutions all along the investment chain whose purpose is, ironically, to provide participants with peace of mind that their assets are well protected.
Besides protection, another term gaining in importance is “transparency”. If a participant in a transaction chain is answerable to a regulator not only for the identity and behavior of their clients and the clients of their clients, but also for what is happening to their assets at any moment in the downstream investment process, the willingness to share in common approaches to operational challenges might diminish.
It is likely that new technologies, such as blockchain, provide a counter-argument by allowing compli-ance and operational efficiency to pull in the same direction. As we suggest in this edition, it is too early to tell, but we are certainly looking forward to the debate. Will you join the discussion?