Nasdaq Decodes: CSD Industry Trends
Nasdaq Decodes with Ryan Wells explores trends in Central Securities Depository Systems, or CSDs, with Andreas Lundell, Head of Product Management for CSD Solutions for Nasdaq Market Technology. Below is a transcript of the conversation, which has been lightly edited for clarity.
RW: Andreas, thank you for joining.
AL: Thanks for having me, Ryan.
RW: What's out there in terms of the trends within the world of CSD? And maybe that's also a technology question too because there are technology trends that are impacting CSDs?
AL: Yeah, absolutely. Like any other sort of infrastructure in the financial market, CSDs have also had their part of regulatory initiatives and new regulations coming in over the last decade – since 2008. I think CSDs are looking into how to evolve the business, and also looking at fintech opportunities – what fintech can bring to the industry. I think a focus for CSDs should be that they need to find new disruptive business models and then try to find the technology that supports the new business model. And that's the challenge that CSDs are looking into. With all the new technology out there, I think you have to look into the competence within CSDs because many CSDs are currently running on quite old technologies as well.
RW: So, you mentioned DLT – is that one technology that you see is especially important to this world of CSDs or is that just one amongst many?
AL: I think that there's a special relationship between the CSDs and blockchain technology or DLT. Four or five years ago, I think there was a fear among the industry that they would be obsolete and DLT would replace the need of a CSD. I think that fear has diminished now, and I think CSDs are now looking into how DLT can help them provide new services or improve business processes et cetera. DLT as such is very decentralized in its nature, and whether it will be disruptive or not for the CSD industry, I think it's too early to say right now. I think there are parts of the DLT or the blockchain technology that can support CSDs for sure. But we'll see. And we are still exploring together with our CSD clients to find areas where we can explore together and find the benefits of blockchain technology.
RW: I see. You mentioned Nasdaq – what are we doing as of right now in terms of the CSD technology space? What's been happening in our world?
AL: So, I'm happy to say that we quite recently went live with our second generation of CSD solutions in Indonesia last year, and we are currently in a number of delivery projects with other clients. And there is huge interest around the world for our next generation of CSD solutions, which is built on our Nasdaq Financial Framework platform. We don't see ourselves as only a tech provider; we see ourselves as a business partner, and we think that the way we structured our solutions is a way that will support our clients to evolve the business at the pace that they'd like to move forward.
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Andreas Lundell
Nasdaq
Andreas Lundell serves as the Head of Product for CSD Technology within Nasdaq's Marketplace Technology business. He is responsible for the development of Nasdaq's CSD solutions, including the offering's functional and technical roadmaps, business development and client engagements, as well as strategic initiatives to futureproof and innovate Nasdaq's offering for the CSD community.
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MarketInsite
Nasdaq
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