Experts debate the impact of digitisation and regulation in post-trading

23 November 2018

The Palace of La Bolsa de Madrid has been selected to host the new edition of the Securities Services Workshops organised by Cecabank, and which, on this occasion, is focused on analysing the impact of digitalisation and regulation in the field of post-trading. For five years Cecabank has brought together professionals from the industry at this event to debate and contemplate operational and regulatory changes that have a direct effect on the business.

This 5th edition of the seminar was attended by broker dealers, CII and pension fund managers, private equity firms and banks, who shared their impressions surrounding current topics, such as the present and future of the securities market regulations, T2S (Target-2 Securities) and pan-European financial infrastructures. More than 300 attendees from 230 institutions debated the coexistence of fintech, ISCs, depositaries and other market agents, under the impact of the industry's digitisation and regulatory pressure.

According to the participants, the event organised by Cecabank has become the benchmark forum for the sector, since it enables guests to share experiences on post-trading activity, which is not usually the central theme of bank meetings.

In the opening ceremony, the CEO of Cecabank, José María Méndez, highlighted the consolidation of this conference as one of the benchmark events on negotiation processes and Spanish post-trade. The impact of the industry's digitisation and the regulatory pressure on fintech companies, ISCs, depositaries and other market agents has encouraged Cecabank to hold this Securities Services Conference for the fifth consecutive year. The event is intended for a broad group of specialists in this field, ranging from Executives, Board Members, Operations Managers, as well as Regulatory Compliance Managers, Legal Managers, Internal Control Chiefs, and Accounting Managers. It is also intended for personnel in operational and control areas of IIC management companies, pension fund management companies, insurance companies, closed collective investment institution management companies, and venture capital firms, securities firms and agencies, depository financial institutions, financial institutions that offer securities services to their clients and financial advisory firms.

The CEO of the institution, José María Méndez, remarked that “Cecabank has committed, from the beginning, to the digital transformation of our Securities Services business. We believe that it is fundamental to know how to adapt to the current environment in the best possible way in order to offer the best value-added services to our clients. Brand digitisation, now ingrained in our daily activities, is and will be one of the biggest challenges that lie ahead for the financial sector, and it must be afforded the importance that it deserves”.

Furthermore, Sebastián Albella, Chairman of the CNMV, highlighted “the good role played by depositaries in Spain, especially in crisis scenarios”. The Chairman of the CNMV has also announced regulatory changes intended to strengthen the role of depositaries, especially as regards liquidity. Similarly, Albella also pointed out that “one of the main challenges of digitisation in the post-trade world is that, in an environment of increasing competition, it can lead to the consolidation of contracting infrastructures”.

Carlos Conesa, Assistant Managing Director of Financial Innovation and Market Infrastructures at Bank of Spain, was in charge of the closing ceremony, and underlined that “in the next few years the Spanish post-trading sector will be faced with significant challenges relating to digitisation and the new projects deriving from pan-European infrastructures. Considering the progress of the sector in recent years, I believe that we have an excellent basis upon which to address those challenges confidently”.

The challenge of digital transformation

Driven by this conference, Cecabank has managed to establish its position as a trustworthy benchmark for the banking sector and large corporations, and it is also the main developer of the ecosystem that structures the Spanish post-trading industry.

The institution is currently undergoing the full-scale digital transformation of its Securities Services business. Digitisation is, currently, one of the fields with the biggest impact on the strategies of financial institutions. Faced with this situation, Cecabank has chosen to strengthen its value chain to make use of all the opportunities offered by this new environment. Following on from this, Javier Planelles, Operational Service Division Manager, stated during the conference that “Cecabank, as a wholesale bank specialising in the provision of Securities Services, Treasury Management, and Digital Payments and Solutions, is in an ideal position to contribute to the financial sector's adaptation to this new reality”.

 

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