Robots are coming for your jobs, warn panellists
31 January 2018 Luxembourg
Image: Shutterstock
Automation and centralisation will be the “next wave” of evolution in the securities financing market, according to speakers at the Global Funding and Financing Summit in Luxembourg.
The headcount of securities lending market will shrink as automation takes over the heavy lifting of the back office, commented one panellist.
Another panellist agreed that standardisation was the likely big trend of the future, and added that “that means plucking the human out of the equation”.
“Technology is becoming increasingly disruptive and it’s becoming faster,” explained one speaker representing a large US agent lender.
When asked what the next wave of evolution in the market will be, panellists were less inclined to highlight emerging technology, such as blockchain, in favour of pointing to well-established kinks in the market structure that should be addressed before investing in new, potentially disruptive technology.
Speakers also noted that the challenges of onboarding and know-your-customer obligations, which are particularly acute for those trying to connect to Eurex’s Lending CCP, could also benefit from automation innovation in the near future.
Two panellists also agreed that UCITS funds, which are currently bursting at the seams with capital but hamstrung by strict lending and collateral requirement rules when it comes to securities lending programmes, may benefit from standardisation and automation as a way to manage risk more efficiently.
The headcount of securities lending market will shrink as automation takes over the heavy lifting of the back office, commented one panellist.
Another panellist agreed that standardisation was the likely big trend of the future, and added that “that means plucking the human out of the equation”.
“Technology is becoming increasingly disruptive and it’s becoming faster,” explained one speaker representing a large US agent lender.
When asked what the next wave of evolution in the market will be, panellists were less inclined to highlight emerging technology, such as blockchain, in favour of pointing to well-established kinks in the market structure that should be addressed before investing in new, potentially disruptive technology.
Speakers also noted that the challenges of onboarding and know-your-customer obligations, which are particularly acute for those trying to connect to Eurex’s Lending CCP, could also benefit from automation innovation in the near future.
Two panellists also agreed that UCITS funds, which are currently bursting at the seams with capital but hamstrung by strict lending and collateral requirement rules when it comes to securities lending programmes, may benefit from standardisation and automation as a way to manage risk more efficiently.
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