Euroclear: Regulation gave a boost to the securities finance market
16 November 2018 Brussels
Image: Shutterstock
Regulation has given a boost to the securities finance market, according to panellists at this year’s Euroclear Collateral conference in Brussels.
On a panel discussing collateral trading, panellists explained that recent regulation has dramatically changed the global collateral management landscape.
Under this wave of regulation, the market has demonstrated its agility and responsiveness by adapting to take advantage of the resulting opportunities.
Panellists explained that moving away from balance sheet intensive trades to new forms of collateral trading such as collateral swaps, and the integration of previously siloed asset classes are two examples of this agility.
One speaker said: “The market has responded to demand and adapted.”
“We have seen a fast-growing market over the recent years. We saw an increasing amount of long-term trades, more cross region trades, US assets traded out of Asia, and more market participants in this market.”
“We also see more electronification of our market, with providers such as GLMX and Wematch, as well as more platforms that I expect will be coming soon. The market had to suddenly adapt to deal with constraints.”
On a panel discussing collateral trading, panellists explained that recent regulation has dramatically changed the global collateral management landscape.
Under this wave of regulation, the market has demonstrated its agility and responsiveness by adapting to take advantage of the resulting opportunities.
Panellists explained that moving away from balance sheet intensive trades to new forms of collateral trading such as collateral swaps, and the integration of previously siloed asset classes are two examples of this agility.
One speaker said: “The market has responded to demand and adapted.”
“We have seen a fast-growing market over the recent years. We saw an increasing amount of long-term trades, more cross region trades, US assets traded out of Asia, and more market participants in this market.”
“We also see more electronification of our market, with providers such as GLMX and Wematch, as well as more platforms that I expect will be coming soon. The market had to suddenly adapt to deal with constraints.”
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