Duncan Carpenter, Director of Product Management

 

Pirum’s annual Product Buzz series highlights our product owners’ views on the tech and trends that will define securities finance each new year. In this instalment, we hear from Duncan Carpenter, Director of Product Management.

A transformative year in the making

The calls for increased choice and resilience that echoed across the industry in 2024 will be answered in 2025, transforming the securities lending operational model in the process.

This will mean: Greater control over your trading routes, increased resilience and improved business continuity planning through diversification, smart routing via standardisation, lower latency and real-time settlements helping participants cope with increasing volumes and comply with regulatory drivers such as T+1.

These forces will shape securities lending for years to come.

“If you can't measure it, you can't improve it”

To begin with, Pirum TradeConnect clients – representing a significant, global pool of liquidity – will be able to interact with any trading counterpart, when they want, and how they want – for the first time in SBL history. But that’s not all.

The ability to combine Pirum TradeConnect with our comprehensive post-trade solutions will make visibility over the ‘true cost of trades’ a reality. This is why, in 2025, I expect to see a shift toward enterprise-wide adoption of full life-cycle offerings, to power smarter investment strategies and data-driven optimisation.

We are already seeing, as part of industry working groups, that the planned settlement cycle move to T+1 in the EU and UK markets is driving discussions on this topic, from inefficient SSI matching, to recalls automation and timely collateralization. The ability to track these data points, and connect the front-to-back decision making will become a key consideration for the industry.

Coupled with the unlimited connectivity, the granular data across the entire life-cycle represents a qualitative leap for the industry. This tectonic shift will no doubt also reverberate across other securities finance verticals in years to come.

To learn more about Pirum TradeConnect, get in touch with Duncan.