“We have been very innovative in regulation but not in innovation”

At AFME Optic 2025, the panel Clearing the Path: The Future of Cash Equity Clearing in Europe explored how regulation, competition, and technology are shaping the next phase of European cash equity clearing. The discussion was moderated by Joshua Hurley (Davies Consulting) and featured María José Gómez Yubero (CNMV), Laura Bayley (SIX), Adam Cross (Bank of America) and Tim Beckwith (Cboe Clear).

The regulatory burden was a recurring theme. Laura Bayley, Head of Clearing Services, noted that “the sheer volume and complexity of regulation has required huge resources.” She added that this “diverted attention away from crucial innovation” and stressed that “we don’t need more regulation, we need stability.”

María José Gómez Yubero, Head of Resolution, Benchmarks and Financial Stability,  reflected on Europe’s recent focus on EMIR 3.0, DORA and the CCP Recovery and Resolution Regulation. She said, “We have been very innovative in regulation but not in innovation,” calling for a shift toward market-driven progress.

Need for competition

The panel also addressed whether Europe should move toward a single CCP. Tim Beckwith, Head of Commercial & Business Development,  stated clearly, “We need competition. A single CCP is not needed and not wanted.” Adam Cross, Global Head of Network Management, supported this view, pointing out that “since the introduction of competitive clearing 15 years ago, we have seen competition deliver significant commercial benefit and innovation.”

Looking ahead, participants pointed to tokenisation, AI and cyber resilience as major forces for change. Bayley said, “As long as it’s got an International Securities Identification Number (ISIN), we can clear it,” highlighting the growing potential for digital assets within clearing.

In summary, the panel agreed that while regulation has built a strong foundation, innovation now needs to take the lead.

The yearly Optic conference, in Amsterdam on 7–8 October 2025, is hosted by the Association for Financial Markets in Europe (AFME). Optic stands for the “Operations, post trade, technology and innovation conference”. PostTrade 360° is there, with our coverage collected here.