[ THOUGHT LEADERSHIP | SOCIETE GENERALE SECURITIES SERVICES ]
Broker-dealers in the modern post-trade financial landscape
Alessandro Cavallari and Steve Gutowski of Societe Generale Securities Services discuss the evolving post-trade landscape , emphasising brokers ' need for technological adaptability and strategic partnerships with settlement agents .
The broker-dealer industry has undergone significant changes in recent years . These changes span from technological innovations to regulatory adjustments , each introducing its own set of challenges and opportunities .
Alessandro Cavallari , head of international sales , Societe Generale Securities Services ( SGSS ), emphasises the importance of anticipating these challenges , adding that the role of post-trade providers cannot be understated . Likewise , Steve Gutowski , head of financial intermediaries and banks coverage , SGSS , states that it ' s not just about foreseeing challenges “ but actively crafting solutions that build upon legacy post-trade processes to ensure uninterrupted flow and secure operations .”
Recognising these industry shifts , particularly from the perspective of settlement agents , becomes paramount . Yet , a central question remains : what challenges do broker-dealers face , and how is the industry adjusting to these transformations ?
Digitalisation is driving the change There is more competition than ever for broker-dealers from high-digitalised new entrants . The more technologically advanced intermediaries can integrate digital capabilities that incumbent providers using dated or legacy technology can ’ t match . As the brokers ’ clients seek new innovative products , these techsavvy intermediaries are perfectly placed to advance their market share .
If traditional brokers need to cut fees to their clients to stay ahead , this will have a detrimental impact on their margins . Alongside challenging market conditions , broker-dealers are being forced to adapt to stay ahead of the curve . To reset the playing field , brokers are looking at how they can better compete and improve their technology solutions .
As Steve Gutowski points out , “ in the wave of digitalisation , settlement agents and custodians must rethink their operational models . Consolidating with strategic partners not only amplifies efficiency but also optimises cost structures , providing a competitive edge in the industry .”
Strategic partnerships Brokers are seeking a global model with access to a vast network of
18 // TheTRADE // Q3 2023