An opportunity to discuss the latest updates and innovations in trading technology, the 13th annual TradingTech Summit London brought together a range of industry leaders, practitioners, tech enthusiasts and vendors. The primary topics of the day were:
- Best practice approaches for modernising the trading technology stack
- Driving trading innovation with interoperability
- Building modern data infrastructure to support trading operations today
- The future of disruptive innovation in market data
In the final panel of the day, Modernising the Front to Back Workflow: Getting Ready for T+1 SEC Settlement, Karan joined panellists from Goldman Sachs, DTCC, AFME, JP Morgan, and BNY Mellon Pershing to debate the European perspective on reduced settlement times. His perspective was clear: investment in technology innovation—with a view to proactively preparing for anticipated regulation (including the EU AI Act, and T+1 settlement in Europe)—is happening, but not yet at scale in the industry and certainly not in a broader, collaborative sense.
Bridging the gap between regulation and innovation
TradingTech Summit addressed the challenge of fragmented innovation and regulation by focusing on impacts within market infrastructure, with key consideration for the Consolidated Tape, T+1 Settlement, and UK/EU divergence. The event, now in its 13th year, is a platform for financial institutions to navigate the complex landscape of regulatory compliance, geopolitical pressures, and technological innovation.
The summit underscored the need for a unified approach to regulatory efforts, which have traditionally been fragmented across different topics, jurisdictions, and technologies. It highlighted the significant strides made in the past 18 months towards a global regulatory agenda that fosters cross-industry collaboration and standardisation.
The event also shed light on the pivotal role of technology in bridging the gap between regulation and innovation. It emphasised the importance of demonstrating the value and interoperability of technology, particularly in the context of cybersecurity, AI, and distributed ledger technology (DLT).
Developments in trade
One of the most significant challenges discussed at the summit was the perceived disconnect between innovation in Asia—driven by China’s emergence as a super economy—and Europe—which in some regards is at least a step behind the United States when it comes to regulation and regulatory preparedness.
Similarly, there is a divergence in how innovations impact specific products, for instance in the equity market, algorithmic trading and AI-driven investment strategies are becoming the norm. On the other hand, the fixed income market is seeing a surge in electronic trading platforms, enhancing market liquidity and price transparency.
Working collaboratively in forums and working groups will help to bridge the disconnect and harmonise regulatory frameworks across different regions. This not only fosters a more conducive environment for innovation, but also ensures a level playing field for market participants.
Looking to the future, what should firms prioritise?
Financial institutions are encouraged to balance adherence to a comprehensive regulatory agenda whilst keeping an eye on emerging RegTech trends. The summit provided valuable insights into these trends and their implications for decision-making and future investment. As we look to the future, the emphasis is not just on harmonising the drive for innovation with the necessity of compliance, but also on acknowledging the power of emerging technologies, for better or for worse.
This is a rapidly changing environment, and the secret to prosperity will lie in fostered collaboration, advocacy for standardisation, and building resilience. By working together, we can build a future where technology and regulation are mutually beneficial, to forge a secure, innovative, and inclusive financial ecosystem.
It’s not just about technology: it’s also about the people—the innovators, policymakers, consumers, to who ultimately determine the shape of the new landscape.
How Delta Capita can help
Delta Capita’s experienced global Consulting and Technology teams have wide-ranging experience across regulatory reporting, technology solutions and services, and innovative technologies such as AI and DLT.
We have a deep understanding of industry best practice, and collaborate with standards bodies, industry participants, market infrastructure providers, trade associations, and technology partners. Where these institutions drive standards, and workflow and tooling commonality, we assist in the mutualisation of those benefits through advisory, interpretation, education, technology adoption, change, and implementation.
To find out more, contact us today.
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