TradeTech Daily 2022 | Page 18

“ Our hope is that the dialogue between regulators that already exists can be maintained or even extended with the goal of efficient markets and enhanced liquidity remaining at the forefront of their thinking .” recent geopolitical events appear to have aligned regimes more closely as they seek to maintain relative attractiveness for market participants . We will analyse the potential impact and represent our views , on behalf of our clients . Our hope is that the dialogue between regulators that already exists can be maintained or even extended with the goal of efficient markets and enhanced liquidity remaining at the forefront of their thinking .

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Marc Wyatt : A proactive buy-side

The buy-side must remain proactive and engaged with regulators amid changing market structure , head of global trading at T . Rowe Price , Marc Wyatt , tells the TRADETech Daily .
Which market structure changes will impact the buy-side most heavily and how will they navigate it ? The ongoing fragmentation of liquidity and the emergence of new platforms continue to drive innovation . That innovation is outpacing the regulatory framework . Regulators around the globe are striving to keep pace . In the US , the SEC has responded by issuing a slew of proposals to address various aspects of the market – from heightened disclosure requirements , buy-backs , settlement cycles , short-interest , security-based swap reporting , etc . In response , the buy-side needs to be proactive and engaged with regulators and industry groups to highlight any unintended impact of any new rules which may harm our clients access to liquidity . Operationally , each new rules represents a unique impact on the market . Taken together , this confluence of new rules and potentially inconsistent regimes around the globe will require buyside players to stand up cross functional teams to implement and monitor their compliance .
How do you expect regulatory divergence post-Brexit to impact the markets and how can trading desks adapt their strategies to this ? We are seeing evidence of how the different regulatory and competition authorities are diverging with potential impact on market accessibility and liquidity . That said , there remain areas of common interest , and

“ Our hope is that the dialogue between regulators that already exists can be maintained or even extended with the goal of efficient markets and enhanced liquidity remaining at the forefront of their thinking .” recent geopolitical events appear to have aligned regimes more closely as they seek to maintain relative attractiveness for market participants . We will analyse the potential impact and represent our views , on behalf of our clients . Our hope is that the dialogue between regulators that already exists can be maintained or even extended with the goal of efficient markets and enhanced liquidity remaining at the forefront of their thinking .

We welcome the focus on a consolidated tape , as this will provide greater transparency for market participants , a much cleaner dataset for post-trade analysis , and will allow for addressable volumes to be more clearly defined . As ever , it is down to our regional trading teams to navigate market structure developments and deliver the best outcome for our clients .
What remains the final piece of the puzzle for institutional adoption of cryptocurrency trading ? If only there were a final piece of the puzzle . I think there are still several pieces that need to fall into place for true institutional adoption of cryptocurrency investment .
First , and probably most importantly , regulatory clarity is required . The ongoing ambivalence from major regulators doesn ' t seem likely to continue indefinitely . That said , we have yet to see a definitive regulatory model for this asset class . Recent announcements from the UK and US point to folks working hard on this issue but clearly this is a complex topic that will require a deft hand to meet regulators stated objectives of retail protection and money laundering
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