In my latest article for Banking Risk and Regulation, a service from FT Specialist, I look at the various forces that will shape the industry this year – including regulatory reforms, technological innovation and geopolitical shifts.
Here are some of the key points 👇
📜 Regulatory Reforms – From the UK’s Retail Disclosure Regime to the EU’s Digital Operational Resilience Act, new regulations are enhancing transparency, resilience and data-sharing frameworks.
🔄 T+1 Settlement Cycles – The global shift to shorter settlement cycles brings efficiency gains but also operational challenges, particularly for smaller institutions.
📊 Shadow Banking and Basel III – Heightened oversight of non-bank financial institutions and diverging Basel III implementation across regions are reshaping risk management strategies.
💡 Technological Innovation – Tokenisation and AI-powered tools are transforming securities trading, collateral allocation, and operational optimisation.
🌱 Sustainable Finance – ESG regulations are no longer optional – new EU and UK guidelines are driving meaningful change in market practices.
🌍 Geopolitical Tensions – Ongoing conflicts are creating shifts in liquidity and risk management, while emerging markets in Africa and the Middle East present growth opportunities.
📈 Market Trends – Strategies like bond basis trading and the yen carry trade remain attractive, but vigilance is needed given market volatility.
In my view, 2025 looks to be a year of transformation for securities finance.
Adapting to change while staying ahead of trends like tokenisation and ESG integration will be critical for success. The opportunities are vast, particularly in emerging markets and through leveraging new technologies.
What are your thoughts on the biggest challenges or opportunities ahead? Let’s discuss in the comments 💬
If you’re interested, you can read the full article at Banking Risk and Regulation, available with a free, three-week trial.
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