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The list of new technologies with major transformation capabilities is long: Distributed Ledger Technology (DLT), cryptocurrencies, Robotic Process Automation (RPA), Artificial Intelligence (AI), Application Programming Interfaces (APIs).
DLT is by far regarded as the most promising technology as it offers decentralization and, potentially, a different approach to interoperability for market participants. After the initial hype around DLT that began in 2015 died down, SIX Securities Services saw an increasing number of collaborative innovation projects working to move Blockchain out from a proof-of-concept into production systems.
SIX Securities Services’ DLT strategy is simple: find the right use cases and start in a semi-isolated environment to examine and facilitate real-world adoption. But even if DLT-based implementations are successful, challenges surrounding operational, business and regulatory issues will continue to arise in the securities markets and will remain unanswered for years to come.
As a consequence, instead of talking about new, disruptive technologies, the post-trade industry should first focus on the challenges that need to be solved over the lifecycle of a trade. Technology alone does not bring any added value without the right underlying business model and structures.
Market participants need to look beyond traditional structures and facilitate a model that addresses what is needed going forward. It is essential that different post-trade service providers work together and focus on investor needs while finding creative, streamlined, scalable solutions that can be leveraged across business lines. SIX Securities Services follows this objective by developing a package of value-creating solutions which help financial institutions to significantly offload their operational setup and reduce operational risks and costs. As an example, it has restructured and automated the entire settlement end-to-end process starting after trade execution and including the entire generation of settlement instructions to the full settlement completion on behalf of financial institutions. The service called Advanced Settlement also takes over the entire management and maintenance of standing settlement instruction.
Wikipedia for Corporate Actions.
Reducing risks and costs for the Swiss financial center.