VIDEO | The post-trade industry is facing a wave of transformation as it grapples with the shift to T+1 settlement cycles, the rise of digital assets, and the growing importance of operational resilience. With expectations for accelerated settlement increasing, the industry is also exploring real-time and atomic settlement solutions, while balancing regulatory demands with the need for innovation.

The recent transition to T+1 in North America revealed unexpected challenges, particularly in areas like securities lending and funding. “There are now changing expectations for accelerated settlement… not only for T+1 but also real-time and atomic settlement,” explained Marcello Topa, director of Global Market Advocacy at Citi, during PostTrade 360° Nordic 2024. Over the next decade, platform modernisation and real-time data flow will be critical to keeping up with these demands.

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The rise of digital assets and technologies such as blockchain and artificial intelligence are reshaping post-trade operations. Topa highlighted how regulatory frameworks, such as Europe’s Markets in Crypto-Assets (MICA) and the Digital Operational Resilience Act (DORA), are evolving to address these innovations. “Our industry is already very much digitalised,” Topa said, while stressing the importance of robust systems to handle the growing complexity. He noted that resilience is now a bigger concern than ever.

Balancing Regulation with Progress

Despite the challenges, regulation offers both constraints and opportunities for the industry. “Regulation gives us coordination but can also drag on our ability to innovate,” Topa pointed out. However, he views these regulations as necessary to ensure that the post-trade ecosystem remains coordinated and efficient as it adapts to new realities.

Team sport

Topa also underscored the increasing role of retail investors in capital markets, a trend that is driving regulatory focus and operational shifts. Collaboration remains vital, as post-trade is “a team sport,” and the industry must engage younger talent and innovative ideas to remain dynamic.

“There is a lot of work ahead, but also a lot of opportunities,” Topa concluded, encouraging the industry to embrace the challenges and innovations that will define the future of post-trade services.

Speaker:
Marcello Topa, Director, Global Market Advocacy, Policy and Strategy, Citi

Hosted by Citi

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