2017 will be a year of seismic and extraordinary change for post-trade. This may seem like a bold claim in an industry that has always been associated with an evolutionary risk-averse approach that has kept it out of the limelight for all the right reasons. However at a minimum, a quiet technological revolution seems inevitable because, however you look at it, 2017 will see a number of game changing events for the Post-Trade world.
Regulatory and market pressure for ever more capital efficiency and transparency will combine with an industry wide review of existing systems creating a moment for the industry as it moves en-masse to new technology solutions. In addition, more and more products and asset classes will be moving from over-the-counter (OTC) to formalised clearing, meaning this technology tipping point will generate its own momentum as firms build their systems to cope with the new demand. In a new landscape where fast change will be the only certainty the leaders will be the ones with technologies that not only maximise capital and margin efficiency but are also future proofed with the ability to rapidly adapt to include breakthroughs in blockchain and Artificial Intelligence (AI), which the industry expects to characterise in the next five years.
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