Euroclear Sweden – shaping tomorrow’s market structure
Challenges to increase efficiency, new regulations and how to contain cost where some of the topics covered at the Swift conference held in Stockholm in late November.
With a strong focus on the Nordic market infrastructure, conference participants and panellists debated regulation, politics, banking, central banking, new technology, collateral, T2S, Investment funds, sub verses global custody as some of the topics. Euroclear Sweden participated with Yannic Weber as speaker and Joakim Lundin, Peter Kraemer and Stefan Persson as delegates and Hanna Vainio as speaker from Euroclear Finland.
-It is clear that today’s post trade solutions doesn’t support tomorrows business, and conference participants expects CSDs to continue to play a role in shaping tomorrows market structure, whether it’s collateral, funds or just good old settlement, says Joakim Lundin, Network Manager, Euroclear Sweden.
Yannic Weber, Chief Executive Officer, Euroclear Finland and Euroclear Sweden joined the panel for Post trade issues, Post-trade under pressure.
Yannic, what in your opinion was the main message during your session?
-The direct model is a very good model in terms of asset segregation, shareholders identification, prevention of tax evasion, anti-money laundering.
-When comparing CSD costs, and operating models, one should look at the value received for such costs for the end-users, i.e. issuers and investors. The direct holdings model is also a way for banks to outsource processes to the infrastructure and mutualize costs which will be a must for financial institutions going forward.
Is outsourcing a way for banks to go forward?
-They will have indeed to review dramatically their business model to substantially reduce their cost base and focus on what they are good at, where they create competitive advantage.