The Securities Services Evolution 2023: Key Points
The Securities Services Evolution 2023 report by Citi Securities Services highlights the ongoing transformation in the financial industry. Here are the key points:
- The industry is preparing to reduce settlement cycles by a day in the world’s largest capital market.
- Central Securities Depositories (CSDs) face challenges in accelerating transformation and transitioning from outdated infrastructures.
- Geographical differences exist, with Latin America consolidating and Europe reevaluating clearing competition.
- Asia and Latin America drive financial market participation through digitization, while North America and Europe emphasize common industry platforms.
- 89% of survey participants expect local settlement cycles to transition to T+0 or T+1 within five years.
- 74% of respondents are involved in DLT and digital asset initiatives, with a shift in focus towards DLT and tokenization.
- Operational digital cash facilitated by CBDCs and other mechanisms is anticipated within five years.
The report emphasizes the need for effective engagement between the buy-side and the sell-side and modifying industry processes to fully leverage the advantages of DLT.
Hot Take: The Future of Securities Services
The Securities Services Evolution 2023 report paints a picture of a rapidly evolving financial industry. With a shift towards shorter settlement cycles and the increasing adoption of DLT and digital assets, the future holds exciting possibilities. However, successful engagement between different stakeholders and the modification of industry processes will be crucial in harnessing the full potential of these advancements. The industry is poised for significant changes, and those who adapt and embrace the evolving landscape will likely thrive in the years to come.
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