Associations submit digital future letter 29 July 2020London Reporter: Natalie Turner
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A broad alliance of associations have submitted a joint letter to the Bank for International Settlements, the Financial Stability Board, and the International Organization of Securities Commissions asserting its commitment to defining and promoting the development of a digital future for financial markets.
The associations working in collaboration are International Securities Lending Association, International Swaps and Derivatives Association, International Capital Market Association, London Bullion Market Association, UK Finance, Association of German Funds, Australian Financial Markets Association and the International Islamic Financial Market.
The joint letter sets out a series of principles and objectives aimed at promoting the development, distribution and adoption of digital standards within the financial markets, creating the foundation for transformational change.
The letter reveals that the pandemic has highlighted the urgency of these efforts. While markets continued to function well, the significant increase in market volatility experienced at the outset of the pandemic placed existing infrastructure under considerable strain.
It goes onto explain that the pandemic is now challenging established consensus around how trading and operations should function, with many firms now seeking to accelerate plans for greater digitization and automation within their operating models.
The trade bodies believe that by embracing a digital future for its members and markets the benefits are ‘self-evident’ and will include increased digitisation and increased automation which will allow firms to deliver better services and lower costs for businesses and consumers in the real economy.
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