[ THOUGHT LEADERSHIP | SOCIETE GENERALE SECURITIES SERVICES ]
markets in all major asset classes and utilising a settlement agent that can assist them in moving into new markets or solutions where required . Brokers want integrated solutions , capturing the end-to-end value chain . The concept of a ' one-stop-shop ' that seamlessly blends clearing to custody is quickly becoming the industry standard .
Utilising the tools of their settlement agents to manage credit risk and optimise their liquidity is vital , particularly in the face of rising interest rates . Settlement agents are expected to have strong reporting capabilities . Data is not only crucial to the day-to-day monitoring of a broker ’ s activity but analysing and predicting trends . The industry ' s hunger is evident – not just for data , but for insights that data can provide . Brokers are also actively embracing and leveraging other value-added services available via their settlement agents and custodians , such as stock borrowing and FX .
Innovation and relationship : Two sides of the same coin The ongoing technological wave is reshaping the posttrade environment . While AI and blockchain have garnered attention , they ' re only part of the story . Even as broker-dealers navigate a digitised world , the essence of personal relationships remains undiminished . “ Our industry thrives on trust , which is built on consistent interactions , understanding client needs and offering the most advanced experience ,” Cavallari explains .
As the financial industry becomes more digitised , a pressing question emerges : how can the industry ensure that human-centric approaches
Above , Alessandro Cavallari and Steve Gutowski below
are not lost in the shuffle ? The relationship between brokerdealers and settlement agents is symbiotic . Gutowski says , “ understanding human needs and expectations becomes a distinctive advantage .”
This alignment between technological prowess and relational expertise will define the post-trade sphere ' s future . “ It ' s not about choosing between digital and human ,” Cavallari adds , “ it ' s about leveraging each to enhance the other .”
Navigating the regulatory landscape In the ever-shifting world of finance , broker-dealers face the intricacies of evolving regulatory environments . Notably , frameworks such as Central Securities Depositaries Regulation ( CSDR ) and Mifid II have introduced multifaceted challenges .
Settlement agents serve as buffers in this matrix , adhering to the nuances of each regulation and ensuring compliance while preserving the integrity of operations . Gutowski adds , “ our expertise aids brokerdealers in not just meeting these requirements but demonstrating trust to our clients and the industry .”
The way forward In the contemporary post-trade financial environment , the relationship between brokers and their settlement agents is paramount . As the industry confronts the challenges of digital transformation , escalating operational costs and an intensified emphasis on datadriven strategies , adaptability and strategic alignment are essential . Success hinges on the ability to seamlessly integrate technological advancements while meticulously selecting collaborative partners , underscoring the importance of both innovation and deep-seated expertise .
Broker-dealers must integrate digital efficiencies with the indispensable value of human interactions . As highlighted by Cavallari and Gutowski , the future is reserved for those entities that adeptly balance technological prowess with the nuances of personal relationships , thus redefining standards in the post-trade domain .
Issue 77 77 // thetradenews .. com // 19