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Oct 19, 2018

ISLA Post Trade Conference – Pirum’s Observations

Pirum had the pleasure of attending ISLA’s 9th annual post trade conference in London.

The focus of debate was centered around the upcoming Central Securities Depositories Regulation (CSDR) which is scheduled to take effect in June 2020.

It was suggested that CSDR along with SFTR could well reshape behaviour in the Securities Finance market in the near future. It is clear, regulation has increased the importance of  post-trade processes and is now very much a front office concern and no longer an after the event (or trade) consideration.

There was the suggestion that firms could see benefit from their regulatory spend by ensuring they achieve greater economies of scale and efficiency in their operating model as well as reducing overall risk.

Pooma Kimis, from OMFIF provided a fascinating reflection on 10 years post the collapse of Lehman Brothers and whether regulation has gone far enough to prevent another crisis. MIFID II / MIFIR, EMIR and Dodd-Frank have been introduced to improve the functioning of financial markets and strengthen investor protection. SFTR and CSDR are the first reporting regimes in Securities Lending, and whilst transparency is the primary objective of SFTR, the advent of CSDR aims to increase the resilience and robustness of securities settlement arrangements. It was suggested that best practice will no longer be a ‘nice to have’ but rather regulation will force procedural change to achieve adherence.

Pirum’s Head of Product Development, Robert Frost joined the panel to discuss post trade technologies and how technology providers are helping to support the Securities Lending business to navigate the regulatory landscape. It seems that market participants have never been more open to considering external solutions to help them scale and drive their businesses.

Thank you to ISLA for the continued focus on such important topics and thank you to Aviva for hosting an event that is now in it’s 9th year.

We look forward to participating in 2019’s event and will continue to evolve and build solutions that assist the Securities Finance industry in the coming years.

Scott Brown

Business Development Manager

Pirum Systems Ltd