Post-trade services face adapting to phenomena such as tokenisation or 'stablecoins' while continuing to prepare for the T+1 standard that shortens the settlement period
The transformation of traditional investment vehicles and the rise and consolidation of new ones was the central theme of the 12th Securities Services Conference, which had the leitmotif "Building the future: resilience, innovation and service", organised by EXPANSIÓN and Cecabank, with the collaboration of FundsPeople, on 23 April in Madrid.
The digital asset market is already a global phenomenon: According to IMF estimates, its added value is already $4.2 trillion. Soledad Núñez, Deputy Governor of the Bank of Spain, defined this boom as a long-term structural trend, which requires updated regulatory frameworks and reflection on the role of central banks. "Our intention is to lay the foundations for a gradual transition in Europe towards an orderly digital market", she commented.
"Our intention is to lay the foundations for a gradual transition in Europe towards an orderly digital market." Soledad Núñez, Deputy Governor of the Bank of Spain
At the same time, it is necessary to make progress in the integration of European stock markets, according to Carlos San Basilio, President of the CNMV.Assessing the legislative initiative for market integration and supervision currently being negotiated in Brussels, he emphasised its importance for gaining competitiveness: "Without integrated stock markets, it will be very difficult for European economies to compete with other more integrated and innovative markets."
Changes
Returning to the transformations taking place in the securities services sector, Ainhoa Jáuregui, CEO of Cecabank, emphasised that digital assets "are transforming the way we understand the management, distribution and custody" of financial assets. In light of these changes, "close collaboration between all actors involved in the system is essential: regulators, asset managers, service providers…".
Delving deeper into digital assets, Ernesto Olmedo, Head of Strategy & DeFi at Qivalis, noted that the issuance of the first globally available euro-denominated stablecoin will be "a strategic response". "Europe has understood that to defend digital economic sovereignty it must build its own infrastructure", he added.
Regarding tokenisation, "the conditions are ripe for the industry to begin more actively entering the tokenised asset market," according to Artur Callau, Head of Corporate Innovation Digital Assets at CaixaBank. Carlos Matilla, CEO of ioBuilders, positively assessed that in Europe, "in tokenisation projects, the technology has been developing hand in hand with regulation." Even so, these solutions must offer incentives to the investor, the intermediary, and the client.
"Without integrated stock markets, it will be very difficult for European economies to compete." Carlos San Basilio, President of the CNMV
Amparo García, General Manager of Securitize Europe, predicted that traditional intermediaries will remain in the future ecosystem because, "beyond technology, the trust and knowledge they provide will continue to be valued", although in some cases, such as custodians, their roles will change.
Investment and post-trade
Regarding the shortening of the settlement period to a single working day, which is what the new European T+1 standard entails, the transition to T+1 is, in the opinion of Marta López, Head of Relationship Management Europe at Euroclear, "a challenge of coordination and timing", for which "we must use the best tools so that the best assets are in the best place at the best time." Iñaki Varela, Deputy General Manager of Media at Kutxabank Investment, for his part, considered that "T+1 does not represent a structural change", but we must "persevere with greater intensity in what we have been doing so far in post-trade in Spain and in Europe, because the quality standards are already high."
"Digital assets are transforming the way we understand the management, distribution and custody of financial assets." Ainhoa Jáuregui, CEO of Cecabank
In the same round table discussion on post-trade in Spain, the recent authorisation for collective investment managers to offer securities loans was also assessed. For Faniel Zaplana, Director of Operations at TREA Asset Management, "securities lending is not about being the first to implement it, but about doing it in the most robust way" and in a selective rather than general manner.
Venture capital
Venture capital has established itself as one of the driving forces of the asset management industry, in the words of Miguel Cacho, financial partner at Arcano Capital, because "it provides diversification and stability, and the long-term profitability that the investor seeks." Dunas Capital's Managing Director and Head of Alternatives & Infrastructure, Borja de Luis, explained that they try to "propose products that continue to offer the preservation of value." For his part, Carlos Conti, a partner at Inveready, expressed confidence that the "future of venture capital will lead to it becoming less alternative and more mainstream", offering more attractive and less risky investment strategies.
Finally, regarding ETFs, Silvia Senra, Head of Digital Distribution at BlackRock Iberia, asserted that "there is no other asset industry instrument that is growing so rapidly", with an annualised growth rate of nearly 20% since 2008. And she highlighted three trends: Actively managed ETFs, ETFs that use swaps or derivatives, and access to digital assets.
