Post-trading actors analyze the impact of technological, regulatory and sustainability changes on collective investment.

Post-trading actors analyze the impact of technological, regulatory and sustainability changes on collective investment.

Post-trading actors analyze the impact of technological, regulatory and sustainability changes on collective investment.

Antonio Romero (Cecabank), Montserrat Martínez Parera (CNMV), Aurora Cuadros (Cecabank) and Arturo Criado (Invertia) at the 8th Securities Services Conference.

The post-trade industry wants to be at the forefront of digitization and sustainability in order to offer an increasingly efficient service with added value to market participants. All this in an ever-changing and innovative regulatory environment that seeks European integration.

This has been the message of the sector in the VIII Conference on Securities Services, the main forum of post trading Spanish, which was held this Thursday thanks to the organization of Cecabank and the collaboration of EL ESPAÑOL-Invertia. The event, which has brought together a large group of national and international experts of the investment industry, has had the title: ‘Opportunities of the post trading in a sustainable and digital context’.

The conference, which has highlighted a part of the operational chain that serves to support the participant and ensure that investment orders come to fruitionhas been attended by more than 380 attendees from 160 entities.

The corporate director of Associative Services and Resources of CecabankAntonio Romero. In his intervention, he assured that with a history of 10 years, the entity has become “the main Spanish depositary bank and benchmark in banking services with assets under deposit of 213,000 million euros and in custody of almost 300,000 million”

In addition, Romero highlighted that “in a context of growing regulatory demands and narrow margins”, entities such as Cecabank allow the sector “reduce costs by outsourcing to specialized third parties the processes non-core“.

‘Brexit’ and DLT

In her speech, the vice president of the National Securities Market Commission (CNMV), Montserrat Martinez Parera, pointed out that there are “two trends that are changing the structure of the market for central counterparties.” In both cases, he has pointed out that the objective is for the European entities that provide this service to be at the forefront of the sector.

The ‘number two’ of the CNMV pointed in the first place towards the extension of three years for the equalization of the UK clearinghouses and the European Union despite the ‘brexit’. “We want to give the sector time to improve its efficiency and reduce dependence” on British entities, he pointed out.

Later, he explained how distributed ledger technology -better known by the English acronym DLT-, you can “change the sector”. Something that is based on “eliminating the risk of compensation, because the sale and settlement are made at the same time.” However, he has pointed out the need for further research regarding its application and risks.

Regulatory changes

In addition, during the event, a round table was held on the SDR regulations as a new discipline of securities settlement. Its role was highlighted in “reformulating, optimizing and strengthening settlement processes, minimizing the risks“, as highlighted by Iñaki Varela, Deputy General Director of Media, Norbolsa SV.

In the table moderated by Asunción Fernández, director of Securities Custody and Settlement at Cecabank, Francisco Béjar, deputy general manager of Iberclear -the Spanish central securities depository-, and Vicente García Rupert, technician in the CNMV’s Department of Secondary Markets and Post-Trading.

Inauguration of the VIII Conference on Securities Services.

Inauguration of the VIII Conference on Securities Services.
Jesus Umbria

The first highlighted how in the Spanish market the application of the regulations was perfected “because many more tests were done than in other markets. Meanwhile, the representative of the supervisor has emphasized the sanctioning issues that the regulations have introduced and has ensured that “the efficiency in post-trade settlement has been the star theme in the last two years” In the institution.

The day also included two presentations, one of them focused on the Eurosystem’s projects in the area of ​​post-trading by Miguel Martínez Tahoces, senior market infrastructure expert at the European Central Bank (ECB). He stressed that beyond monetary policies, one of the “basic tasks” of the institution is “the definition of market infrastructures for the stability of the entire European financial system and preserve citizens’ confidence in the euro“.

The sustainable question

For her part, Kris Nathanail-Brighton, Senior Policy Advisor for Special Projects at IOSCO, reflected on data product providers and sustainability factor ratings environmental, social and governance (ESG). Around this issue, a round table was also held around the advice to managers on sustainability.

This round table was moderated by José Carlos Sánchez-Vizcaíno, Director of Depository Supervision at Cecabank. Quentin Dehem, director of client strategy at Clarity AI noted that on many occasions “the lack of data or clarity in them” either due to lack of definition in the standard or publication of them by companies “it makes it difficult for small managers to know in which direction to go”.

For his part, Maël Lagadec, director of ESG consulting at Sustainalytics, pointed out that “there are different levels of maturity in managers” of each country, although there is an increasing jump from exclusion criteria to integration and has highlighted that Spanish firms “must focus more on governance”. In any case, it has been celebrated that the volume of assets under management by ESG criteria has grown by 15% “in the last two years”, as explained by Sabine Lochmann, president of Vigeo Eiris and global director of ESG Measurement at Moody’s.

Innovate with guarantees

The closing of the VIII Conference on Securities Services was carried out by Aurora Pictures, corporate director of the Cecabank Operational Services Area. In his speech, focused on financial innovation, he stressed that “it is absolutely necessary for the progress and growth of organizations”, but warned that it always “at the pace of the market, in an orderly and committed manner, following transparency guidelines”.

In addition, he pointed out that always with the “ultimate goal of serving and protecting the interests of the client”. To do this, he stressed that “it is necessary that regulation, supervision systems and corporate governance practices be robust” A more than specific guide for the post-trade sector to advance at the forefront of new market trends without deviating from its mission.

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