Eclipse Consulting Group’s Post

Great report on "Securities Services Evolution 2023" by Citi on the current state of the securities business and outlook to the future development. Here is the summary of three main points as per the report and a few thoughts around it: 🗝 FMIs (financial market infrastructure companies) globally are facing two headline challenges: how to accelerate transformation and innovation (in settlements and digital assets) while simultaneously managing a transition away from legacy infrastructures. 📌 => truly a challenge to get rid of legacy while also pushing innovation with the bank running daily business reliably 🗝 Settlement acceleration continues to lead the agenda and will impact every step of the trade and post-trade lifecycle from account opening through to FX and treasury, settlements and asset servicing. 📌 => T+2 hopefully a thing of the past, also looking at the next point with DLT which enables atomic settlement 🗝 DLT and digital asset adoption continues to accelerate with momentum growing around the use of DLT and tokens. Industry knowledge around the operational benefits of DLT is maturing quickly and now needs to evolve to include the benefits for the buy-side 📌 => that is absolutely great news, use of tokens and automation in combination will push efficiency ahead https://lnkd.in/eV9SDkfD #web3 #settlement #digitalassets

This project looks similar to the Regulated Liability Network. Some of the same participants are involved. One difference: this POC appears to have been expanded to include settling U.S. Treasury securities and other tokenized assets. I'm excited to see some of the #permissioned blockchain providers like Tassat and USDF Consortium included. The future is coming fast.

Recent events have brought disruptive change to financial services. Over the past 18 months, the US financial markets have experienced regulatory pressure to modernize and safeguard operations, with a number of new rules introduced by the SEC and Treasuries Central Clearing. Moving to T+1 is the most significant regulatory change in years and was designed to reduce settlement risk. However, markets have perceived T+1 less of a growth opportunity, and more of a regulatory burden. What’s the next logical step for accelerated settlement? Markets should take steps toward dynamic settlement, which will enable investors to choose settlement cycles for their transactions, however, a complete operational and technological redesign will be necessary to transition to real-time settlement. In collaboration with our alliances, Digital Asset and AccessFintech, this report provides a distinctive, unique lens into the next generation of operations within the US financial services industry in which human capital concerns and settlement timelines are a thing of the past https://bit.ly/3NS9FrA

You’re only as strong as the slowest link in your transaction chain, at least according to @Swift. Operational issues, volatility overwhelming systems, and a lack of transparency all contribute to trade failures. But could these failures increase as exchanges struggle to keep up with T+1? T+1 will mean that asset managers, for example, only have five hours to process executions at market close. If these parties rely on manual data processing systems, this requirement simply cannot be met. T+1 regulations aren’t about scrambling to keep up — they’re an opportunity to rethink the way we approach settlements and markets. Gresham understands the old way of doing things, and we also understand how firms can do better when they have the right tools. It’s time to seriously consider how your organisation can get ahead of T+1. Read more: https://lnkd.in/eCuFVeAs

🔥 𝗘𝗳𝗳𝗲𝗰𝘁𝘀 𝗼𝗳 𝘁𝗵𝗲 𝘁𝗿𝗮𝗻𝘀𝗶𝘁𝗶𝗼𝗻 𝘁𝗼 𝗧+𝟭 - 𝗦𝗲𝘁𝘁𝗹𝗲𝗺𝗲𝗻𝘁 𝗳𝗼𝗿 𝗯𝗿𝗼𝗸𝗲𝗿𝘀 𝗮𝗻𝗱 𝗶𝗻𝘃𝗲𝘀𝘁𝗼𝗿𝘀 𝗶𝗻 𝟮𝟬𝟮𝟰 T+1 Settlement Adoption to Accelerate in 2024. While North America's migration to the T+1 settlement cycle is scheduled for May 2024, ESMA has launched discussions on the subject across the EU, Switzerland, and the UK. The Association for Financial Markets in Europe (AFME) is to submit feedback after assessing the way it might change the risk landscape, existing market efficiency, access to capital markets, and introduce liquidity and functional imbalances in the European trading ecosystem. According to the Federation of European Stock Exchanges, transitioning from a 2-day to a 1-day settlement cycle must be closely coordinated among regulators, market participants, and FMIs (financial market infrastructures). While it is technically feasible, the operational readiness of major market participants is critical. According to ICMA, in addition to the post-trade process, the move will affect trading practices and strategies, liquidity, and funding. While the regulators are assessing the costs and benefits of reducing the settlement cycle, brokerages must keep their customers updated and prepare them for the same. Updating traders on the latest developments in the markets, along with stable liquidity across market conditions, is the best way to ensure satisfying trading experiences. You can also bolster trader confidence with stable institution-grade liquidity, real-time data direct from the source, and superior market conditions with thin spreads and ultra-fast execution by partnering with X Open Hub. Get liquidity support across 5,000+ instruments to help traders gain exposure to a wide variety of markets with a single partnership. Offer uninterrupted trading with superior technology and servers distributed worldwide to maximise uptime under all market conditions with the lowest spreads, deep order books, and lightning-fast feeds straight from the exchanges. 👉 Learn more: https://lnkd.in/e8VDyig #LiquiditySolutions #LiquidityProvider #TPlus1Settlement

A Central Securities Depository, a global custodian, a technology provider and Swift walk onto a Sibos session ... started no joke, ever. Cringe-worthy attempts at humour aside, it is great to read consensus on the importance of the Unique Transaction Identifier, of its benefits (lingua franca across the post-trade chain) and of making its adoption front and centre of these august institutions' strategies going into a year of CSDR and T+1 pressures. Read more on the swift.com article linked below. --- Did you know that the industry is using the Unique Transaction Identifier (UTI) to improve transparency in #securities settlement and tackle settlement fails? 💼 Early adopters like The Depository Trust & Clearing Corporation (DTCC), Deutsche Bank, Torstone Technology, and Simon A.X. Daniel from #Swift are already seeing the benefits of this standard. 🙌 Check out this article to learn more about how the UTI is boosting efficiency, reducing costs, and avoiding settlement fails in the #PostTrade and #CapitalMarkets space. ➡️ Link: https://okt.to/2yf4NV #securities #Swift #PostTrade #CapitalMarkets

2024 brings significant changes to transaction reporting. With #Finzly's SaaS platform for #FXtrading, banks can meet regulatory demands and take advantage of standardization at no additional cost. Learn how banks using our #FXplatform effortlessly managed Phases 1 and 2 of the #CFTC rewrite.

Curious about the hottest post-trade topics of 2024?🔥 Dive into the first instalment of our new series ‘2024 post-trade buzz unveiled’ with Thomas Veneziano, as he illustrates how Pirum’s clients have nothing to fear from T+1. 💪 Tom Veneziano, Product Director, Head of North America Product For North America, top of mind will be the shifting regulatory landscape. On May 28th, market participants operating in the US, Canada and Mexico will move from T+2 to T+1 settlement. Thankfully, Pirum’s Recalls Manager is T+1 ready. For our clients, the shortened settlement cycle may not represent what we in the states like to call a nothingburger, but it definitely is a non-problem: our solution was designed from the outset to operate in real time.   Meanwhile, the SEC’s 10c-1 regulation – effective date 2nd January 2026 – aims to increase transparency for securities lending reporting in the US. Again, Pirum’s US clients can rest with ease: our RegConnect solution, built in partnership with S&P Global, was designed to accommodate the similar though more complex and stringent European SFTR requirements.   As our tech build already covers the regulatory horizon and beyond, we are able to focus on getting Pirum’s US Post Trade Services solution to market. The fact that our platform achieves an industry-leading 99.8% straight-through processing (STP) rate, and will soon cover the entire post-trade lifecycle, with a significant and proven return-on-investment; all this makes 2024 a potentially vintage year for us, and the industry.   Pirum has a compelling story, and we are pumped to get out there and tell it. 💡 Stay tuned for more insights from the rest of the team in the coming days… ... And get in touch if you would like to know how we can help your business. https://lnkd.in/ep98Abxj ℹ️

Explore the transformative power of DLT-based solutions in our latest whitepaper and discover how DLT-based solutions are revolutionising the repo market by facilitating intraday repo, reducing operational and counterparty risks for institutions. Dive into the report to see how your firm could benefit from this technology. #DistributedLedgerTechnology #intradayrepo #DLR #DistributedLedgerRepo Broadridge India Kishore Seshagiri Ashfaq Ahmed

The US #securities trading industry is preparing to transition to T+1. In this blog, Muniraj M. takes us through a detailed understanding of the benefits, impact areas, implementation approach, and #risk factors to consider during this change. It is a long and deep read to reveal all blind spots for #broker-dealers, banks, and #fintech companies that want to understand T+1. Have a nice read. bit.ly/3DZNcDq Muniraj is a seasoned #capital markets domain specialist with a diverse experience in application reengineering and post trade #settlement innovation. He has worked with several #market players across the entire #trading lifecycle.