By Ann Marie Bria, Managing Director, General Manager of Asset Services, DTCC
Ann Marie Bria
As the global financial markets continue to evolve and scale, the asset services industry is at a critical point where it must transform processes and technologies to successfully meet the growing needs of clients, regulators and counterparties. Today, asset servicing is performed by virtually all market participant firms, however, inefficiencies lie in legacy systems and manual, non-standardized processes across the asset life cycle, creating increased costs and risks. To address these challenges, firms must place a renewed focus on upgrading technology as well as modernizing processes to achieve more efficient, data-driven and resilient systems.
But, where to focus? The biggest opportunity in asset servicing right now is around corporate actions event announcements, a critical processing area filled with friction and fragmentation spanning data collection delays to information discrepancies. To drive improvements in corporate actions and address market demands, firms must modernize and evolve their methodology to embrace a direct-sourcing model that allows for the retrieval of critical event data leveraging standardization. DTC has already begun engaging with the industry to further innovate this critical part of the securities lifecycle by leveraging technology and redefining processes to enhance efficiency and accuracy.
Leveraging direct-sourcing models
Currently, the asset services industry is challenged by a lack of automation as well as redundant methodology to capture and manage corporate action announcements, relying on existing data validation models to compare disparate feeds that can introduce data discrepancies. A recent survey conducted by Value Exchange revealed that a single corporate action event involves numerous stakeholders, however, if a real-time, standardized platform is adopted to form a connected ecosystem, the industry could potentially save USD 15 billion annually.
To address these operational challenges and promote streamlined processes to capture reliable source data, DTC is actively working to digitize the securities lifecycle of the 1.4M eligible securities held at DTC by introducing a direct sourcing model for Corporate Action announcements. By capturing event data in a standardized way through issuers, agents and other responsible third parties, firms receiving this information can restructure how lifecycle events are processed. The result? Near real-time decision-making capabilities across asset managers and their clients. When investors engage directly with source event announcements from issuers and agents they benefit from more accurate and timely data, improved automation, lower risks and greater operational efficiency.
Benefiting from new technologies
As the asset servicing industry explores new ways to automate and improve their offerings, one of the most compelling developments across the industry is the widespread adoption of digital technologies like Artificial Intelligence (AI) and Machine Learning. These technologies are already playing a pivotal role in reshaping financial services and are positioned to be key enablers across the asset servicing space.
AI has the capabilities to redesign how information is captured and shared across corporate actions announcements. For example, when a bond is going to be called prior to maturity, there is documentation created by issuers and agents that is sent out to bondholders. This documentation contains critical data points that are needed to understand how this corporate action is going to impact the bond and its bondholders. The process today involves documents being sent via email, requiring manual data entry into systems.
Leveraging technologies, like AI, can reduce manual processes by automating data extraction and entry from documents to create these events, and overall improve how corporate actions announcements are managed. AI is also suitable for detecting anomalies, inconsistencies and inaccuracies within announcements, further enforcing the need for a standardized platform to automate how information is delivered. By implementing innovative solutions, firms can proactively address pain points by uncovering new insights and tailoring personalized offerings, enabling more advanced decision making.
Moving the Market Forward
DTCC is propelling this change by introducing a new standardized, direct sourcing platform for processing redemptions that will streamline corporate actions processes, benefiting agents by providing visibility into their securities, upcoming events and required actions while establishing a robust solution for market participants to access reliable information, enhance collaboration and improve the dissemination of corporate action announcements. Additionally, the development of a modernized platform will improve transparency and communication between agents and DTC by moving away from manual interactions that drain resources and introduce risks.
The asset servicing industry is at a crossroads, where volumes and non-automated processing are impacting operational efficiency and growing risk. Yet, automated technology and capabilities are poised to revolutionize this critical area of financial services. Together, the industry can build a more efficient, transparent and client-centric framework that powers its continued growth by embracing transformative technologies and new market infrastructure capabilities. This transformation is not just about adapting to the immediate needs of the industry- it’s about moving the entire market forward.
Ripple, a financial technology company that offers crypto solutions for businesses, has announced the launch of digital asset spot prime brokerage capabilities for the United States market.
U.S.-based institutional clients are now able to execute OTC spot transactions across dozens of the most prominent digital assets including XRP and RLUSD.
Michael Higgins
Following the acquisition of multi-asset prime brokerage, Hidden Road, Ripple has combined its licenses with Hidden Road’s solutions, under Ripple Prime, providing new capabilities where institutions can seamlessly access foreign exchange (FX), digital assets, derivatives, swaps, and fixed income.
“The launch of OTC spot execution capabilities complements our existing suite of OTC and cleared derivatives services in digital assets and positions us to provide U.S. institutions with a comprehensive offering to suit their trading strategies and needs,” said Michael Higgins, International CEO, Ripple Prime.
With this launch, Ripple Prime’s U.S.-based clients can cross-margin OTC spot transactions and holdings with the rest of their digital asset portfolio, including OTC swaps and CME futures and options.
Hidden Road was acquired by Ripple in October 2025 and is now Ripple Prime.
Tassat Group, a provider of blockchain-based real-time settlement solutions, has appointed Andre Frank as Chief Operating Officer, according to a press statement. Frank assumes the role after four years of driving technology and operational excellence as Managing Director within the company. Prior to joining Tassat, Frank held senior leadership positions at The London Stock Exchange Group, Citibank, Thesys Technologies, Liquidnet, and Deloitte & Touche.
Guillaume de Chabaneix has joined Tourmaline Europe as an equity trader, Global Trading reported. Based in London, he reports to head of European equity trading Adrian Maydew. De Chabaneix has more than 15 years of industry experience and joins the firm from BTIG, where he has been a trader since 2012. Prior to this, he was a global equities trader at MF Global.
JJ Kinahan
JJ Kinahan, previously CEO of IG US Holdings, Inc. and an industry veteran in the retail brokerage space, will join Cboe to head up a new business vertical focused on developing alternative investment products for retail customers. According to a press release, as Head of Retail Expansion and Alternative Investment Products, Kinahan will oversee Cboe’s product strategy, regulatory alignment, and go-to-market execution for new offerings such as event-based trading, prediction markets, crypto derivatives, and tokenized instruments.
Capitolis has announced the appointment of Richard Schiffman as Chief Product Officer, reporting to Gil Mandelzis, Chief Executive Officer and Founder, according to a press release. Schiffman joins Capitolis from MarketAxess, where he spent more than 20 years and held roles including Chief Technology Officer and, most recently, Global Head of Trading Solutions, responsible for product development as well as the firm’s investment grade, high yield, municipal and Open Trading businesses.
Stavtar Solutions has appointed Alla Liberman as Chief Financial Officer, according to a press release. Liberman brings more than two decades of experience across asset management, fintech, and global financial institutions. Prior to joining Stavtar, Liberman served as CFO and COO at Beacon (now part of Clearwater Analytics) and held senior leadership roles at J.P. Morgan Chase, Royal Bank of Canada, Citadel, and Point72.
If you have a new job or promotion to report, let me know at alyudvig@marketsmedia.com
The recent wave of active exchange-traded fund (ETF) product development in the U.S. ETF industry has been backed by outsized flows to such products, underscoring the opportunity for issuers. Both ETF issuers and asset managers must continue to adapt their distribution structures and coverage models to meet the current demand and growth in active ETF product development, according to The Cerulli Report—U.S. Exchange-Traded Fund Markets 2025.
Active ETF assets ballooned to $1.17 trillion as of 2Q 2025 compared to just $71 billion in 2018. In the first half of 2025, active ETFs saw net flows of $197 billion, on pace to shatter the $279 billion in flows for the entire year in 2024.
Sustained growth in active ETF flows has been buoyed by new managers launching products, more legacy mutual fund managers branching out into the active ETF realm, and longstanding ETF issuers expanding their product lineup beyond its original passively dominated menu of strategies.
“There is particular emphasis on product development within the transparent active segment,” says Kevin Lyons, senior analyst. “87% of ETF issuers tell Cerulli they are currently developing transparent active ETFs, and 50% of ETF issuers plan to convert at least one mutual fund into a transparent active ETF, taking advantage of the benefits of an ETF wrapper (lower costs and better tax efficiency).”
A separate industry initiative is that of dual-share-class product—a structure that, pending regulatory approval, would likely become an important arrow in the quiver for delivering active ETF solutions.
As use and development of active ETF products grows, ETF issuers are working to address perceived obstacles in their distribution models. According to Cerulli, 71% of ETF issuers agree that it is difficult to attain shelf space for active ETF product on broker/dealer platforms, and 58% agree that advisors require additional education on use of active ETFs.
“Asset managers and ETF issuers recognize that an important path to future success is the ability to effectively position themselves in the market to best align with the demand for active ETFs,” says Lyons. “As development of active ETFs progresses, ETF issuers will need to maintain collaboration with wealth management teams to boost product placement, enhance educational resources, and tackle potential challenges for successful distribution,” he concludes.
J.P. Morgan makes strategic investment in the Texas Stock Exchange, joining major global financial institutions, including BlackRock, Charles Schwab, and Citadel Securities
DALLAS, Oct. 31, 2025 — TXSE Group announced today the completion of its second-round financing, bringing its total capital raised to more than $250 million as it readies the launch of the Texas Stock Exchange in the first quarter of 2026.
Expanding its support from major global financial institutions, TXSE Group also announced today that it has received an equity investment from J.P. Morgan as it further solidifies its strategic presence in Texas. J.P. Morgan will join TXSE Group’s board of directors as an observer.
“Our strong capital position validates our mission to bring increased competition to the U.S. capital markets,” said James H Lee, founder and CEO of TXSE Group. “The Texas Stock Exchange’s focus on alignment and transparency for issuers will alter the trajectory of our public markets and help establish Texas as a new global leader in capital markets.”
TXSE Group’s institutional backing now includes four pillars of the U.S. capital markets. In addition to J.P. Morgan, TXSE’s institutional investors include: BlackRock, the world’s largest institutional manager with $13.5 trillion of AUM; Charles Schwab, the world’s largest retail organization with $11.6 trillion in client assets and more than 50% of U.S. equity retail order flow; and Citadel Securities, the largest global liquidity provider, which executes more than one in four shares traded in the U.S.
In total, 82 financial institutions and business leaders are equity holders in TXSE Group. They include:
Individuals or entities that direct or control a broad array of public companies across multiple industries of various sizes, with a combined market capitalization in excess of $2 trillion.
Seven of the 10 largest liquidity providers, representing more than 70% of total U.S. equity order flow.
Several of the world’s largest exchange traded product sponsors, representing 898 ETPs with a combined AUM of $8.5 trillion, or two-thirds of the capitalization of the total ETP market in the U.S.
TXSE Group is the parent company of the Texas Stock Exchange, which last month became the most well-capitalized equities exchange ever to receive approval from the U.S. Securities and Exchange Commission. TXSE will launch trading in early 2026, followed by listing of exchange traded products and corporate issues later in the year.
About TXSE Group
TXSE Group is the parent company of the Texas Stock Exchange and Oculon Intelligence.
The Texas Stock Exchange is a fully integrated, electronic national securities exchange headquartered in Dallas. Backed by the world’s largest financial institutions and liquidity providers, TXSE is focused on enabling U.S. and global companies to access U.S. equity capital markets. It aims to revitalize competition for issuers, establish the premier venue for listings, and create a world-class trading platform for all market participants. More information is available at www.txse.com.
Oculon Intelligence is a security-first, AI-native software-as-a-service market intelligence platform that combines regulatory reporting insights, execution analytics, and market surveillance across equities and options. Oculon Intelligence operates independently from the Texas Stock Exchange. More information is available at www.oculonintelligence.com.
FLASH FRIDAY is a weekly content series looking at the past, present and future of capital markets trading and technology. FLASH FRIDAY is sponsored by Instinet, a Nomura company.
For years, traders have watched electronic trading transform equities, Treasuries, and even credit markets. Now that shift is extending to one of finance’s most complex areas: the derivatives market.
A recent development, the first fully electronic request-for-market (RFM) swaption package trade, shows that even rates options, long handled primarily by voice brokers, are moving toward electronic execution.
On Monday, October 27, Tradeweb Markets facilitated the first fully electronic RFM swaption package trade on its Swap Execution Facility (TW SEF), with Citadel and Barclays as counterparties on the trade.
The transaction allowed institutional clients to request and receive a two-way market for multiple swaptions and swaps in a single electronic quote – something previously only possible via phone.
Troy Dixon, Managing Director and Co-Head of Global Markets at Tradeweb, said the completion of this trade represents a significant evolution in how institutional clients engage in the swaptions market.
Troy Dixon
“By allowing clients to request and receive two-way electronic markets for complex swaption packages, this capability introduces a more streamlined, efficient approach to trade execution,” he told Traders Magazine.
Traditionally, voice trading in swaptions involved lengthy and variable quoting times for a single inquiry, often limiting clients’ number of trades they can execute in a single day, he noted.
“The introduction of this capability for these markets fosters more transparency and streamlined execution and delivers notable efficiency gains through features like organized quote queues, API connectivity for dealers and straight-through-processing (STP) for both dealers and end-users,” he said.
According to Dixon, enabling clients to request and receive a two-way quote in a complex product like swaptions creates some technical challenges. “Clearly quoting a two-way market in a package trade where mid may be around zero is a common source of misquotes in the traditional voice markets,” he said.
By enabling a two-way market electronically, RFM protocols give clients control over their trading intent while increasing transparency and efficiency.
Yashodeep Honmane, Head of US Rates Options at Barclays, said that RFM protocols deliver executable two-way markets to facilitate risk transfer. “This builds confidence for institutional clients to trade larger sizes and hedge portfolios more dynamically,” he said.
“For smaller institutions and non-rates participants, the ability to trade in smaller tickets removes the need to aggregate risk before execution, lowering the barrier to entry and expanding access—broadening market engagement and utility,” he said.
Commenting on the operational benefits, Honmane said: “End-to-end automation reduces manual intervention and operational risk.”
“Risk systems update immediately post-trade, and SDR reporting is timestamped accurately. The standardized workflow improves auditability, aligns with regulatory expectations, and supports consistent compliance across regions—making global operations more efficient and easier to oversee,” he said.
The adoption of electronic protocols in this space mirrors the broader trend across fixed income and derivatives markets. Platforms are no longer just venues for trade execution – they’re ecosystems for data management, compliance, analytics, and workflow automation.
Looking ahead, the electronification of swaptions may be the first step toward a fully integrated, data-driven derivatives market. Once trades are executed electronically, platforms and participants gain access to rich datasets, enabling advanced analytics, real-time risk management, and potentially AI-assisted execution.
Buy-side institutions are likely to engage more as electronic protocols provide transparency and reduce operational complexity. Over time, this could broaden participation, deepen liquidity, and transform how volatility and interest rate risk are priced.
“We believe the continued adoption of electronic workflows will fundamentally reshape market structure by offering more transparency, efficiency and cost savings across different markets,” Dixon said.
“As more products – like swaptions – move from traditional voice trading to electronic trading, market participants gain access to deeper liquidity, enhanced price discovery and better trade execution,” he added.
Honmane argued that as electronic execution becomes more scalable, both clients and dealers can rethink how swaptions are applied—moving beyond directional views to more flexible, risk-driven strategies.
“Rates volatility offers uncorrelated return potential, and broader adoption will support its use across a wider set of portfolios. This shift also enables innovation in trade design and automation, including dynamic hedging and risk recycling models,” he said.
Honmane added that broader adoption will increase volumes and tighten bid-offer spreads, improving pricing and execution quality.
“Dealers benefit from consistent two-way flows, enabling better client servicing and more efficient risk management. Standardized reporting enhances transparency, contributing to a more competitive and resilient market structure,” he concluded.
November is National Entrepreneurship Month, as proclaimed by President Barack Obama in 2011.
To that end, Traders Magazine is launching a LinkedIn content campaign to commemorate and observe the month.
We plan to post a mini-profile of a founder or co-founder in the capital markets business, each business day in November, on Traders Magazine’s LinkedIn page. These will be medium/long-form LinkedIn posts of a few hundred words that capture the essence of the entrepreneur’s story.
The posts will be standardized in the sense that they will all be writeups of a few hundred words plus a photo. But the content itself will not be standardized — rather, we want to emphasize the unique personal and anecdotal aspects of each entrepreneur’s story.
We’re steering clear of formulaic accounts of companies’ foundings, growth and a description, i.e. what people already know. Instead we’re trying to draw out individual entrepreneurs’ unique perspectives about their entrepreneurship journeys.
Check out Traders Magazine LinkedIn for daily entrepreneurship posts starting on Monday, November 3.
CHICAGO, Oct. 30, 2025 /PRNewswire/ — Cboe Global Markets, Inc. (Cboe: CBOE), the world’s leading derivatives and securities exchange network, today announced JJ Kinahan will join as Senior Vice President, Head of Retail Expansion and Alternative Investment Products.
Version 1.0.0
In this role, Mr. Kinahan will lead Cboe’s newly established business vertical focused on developing alternative investment products for retail customers, helping to oversee product strategy, regulatory alignment, and go-to-market execution for innovative offerings such as event-based trading, prediction markets, crypto derivatives, and tokenized instruments.
“As our industry undergoes rapid transformation, we see significant opportunity to harness our unique capabilities and accelerate growth in areas where we can lead and differentiate,” said Rob Hocking, Global Head of Derivatives at Cboe. “JJ Kinahan brings an exceptional track record of innovation, deep understanding of retail investors, and a strong commitment to investor education and market integrity that will help drive our next phase of retail product development. His expertise will be instrumental as we look to strategically expand into new markets.”
Craig Donohue, Chief Executive Officer of Cboe, said: “Over the past six months, Cboe’s momentum has continued to build as we strengthened our leadership team with strategic hires across strategy and corporate development, global derivatives, clearing, and Data Vantage – each reinforcing our foundation for growth. The addition of JJ Kinahan, a highly regarded industry veteran in the retail brokerage space with deep expertise in equity derivatives, will further position Cboe to capitalize on emerging opportunities in the retail oriented digital, crypto, and event markets space. I look forward to working very closely with Rob and JJ to accelerate our entry into these new areas of opportunity.”
JJ Kinahan said: “Cboe has long been recognized as a global leader in derivatives, known for pioneering many first-of-their-kind products that have transformed financial markets and opened new trading opportunities for investors. I’m excited to build on that legacy and work with the Cboe team to deliver the next generation of innovative solutions that meet the evolving needs of today’s retail traders.”
Previously, Mr. Kinahan was the CEO of IG US Holdings, Inc., the parent company of tastylive, Inc., tastytrade, Inc., tastycrypto, The Small Exchange, and tastyfx. Mr. Kinahan also served as President of tastytrade, the retail brokerage and trading platform. He was formerly Chief Market Strategist and Managing Director of Market Structure Strategy and Client Advocacy at TD Ameritrade, as well as Managing Director of Trading Platforms for Charles Schwab. He began his career as a Chicago Board Options Exchange market maker, later holding positions with ING Bank and Van Der Moolen.
Asset managers and wealth managers are proceeding cautiously with tokenization adoption, while custodians have emerged as clear early leaders, according to the 2025 Broadridge Tokenization Survey.
Among wealth managers, 10% offer tokenized products today, while 33% are planning future launches. Meanwhile, 63% of custodians already offer tokenized asset services, with another 30% planning to enter within two years, according to the findings.
Germán Soto Sanchez
Meeting the custody needs of tokenized assets represents infrastructure modernization for custodians – given that such modernization enables greater efficiency, transparency & auditability, said Germán Soto Sanchez, Chief Product and Strategy Officer, at Broadridge.
“Specifically, the custody services required for tokenized assets are quite similar to the core services custodians already provide; so these are natural extensions of their current business models, while providing opportunities for growth through DeFi,” he said.
Conversely, for asset managers and wealth managers, he said, tokenization represents a fundamental change in how investment products are created, distributed, and managed.
“As such, tokenization requires these providers to rethink their products/offerings – which in turn brings structural, regulatory, and business-model uncertainties,” Sanchez told Traders Magazine.
For example, he said, asset managers are using tokenization to develop new types of funds – for which it may be perceived that there is a higher governance burden (e.g. need to coordinate with regulators, distributors and investors); additionally, asset managers need to upskill in regards to tokenization mechanics.
Sanchez added that wealth managers face the same need to upskill but are also impeded by needing downstream infrastructure to support tokenized holdings (without it, they cannot offer tokenized products). “They also need to be empowered by platforms that support wealth manager / investor shared wallets, something that is not commonplace today.”
The survey also found that early adopters report an average of four to five tangible benefits from tokenization, while non-adopters reported fewer than three perceived positives.
Among early adopters, the most widely cited benefits include: improved transparency and data tracking (66%); greater liquidity and investor accessibility (61%); and lower operational costs (57%).
According to Sanchez, early adopters are proving that tokenization delivers tangible, multi-dimensional value.
By embedding blockchain infrastructure directly into fund operations, they’re realizing gains; for example, leaders have suggested that their tokenized Money Market Funds operate significantly more efficient than their traditional money market funds. Industry data shows tokenized programs generate four to five distinct benefits on average, far exceeding non-adopters, he said.
According to Sanchez, global consultancies such as EY and PwC have highlighted the same trend: tokenization is evolving from pilot to practice, unlocking earlier operational payback through faster settlement, reduced reconciliation, and expanded investor access.
“Major asset managers like Janus Henderson, Hamilton Lane, and KKR are now issuing tokenized feeder funds and private-credit vehicles that lower investment minimums, while BNY Mellon and Franklin Templeton have embedded blockchain into accounting and mutual-fund recordkeeping,” he noted.
“For asset managers looking to follow, start with operational wins where tokenization naturally enhances servicing and liquidity; we’ve seen many firms start with asset classes such as private assets or short-duration funds,” he said.
“Additionally integrating with the correct custodial and compliance partners early in the process and treating governance as a core component of infrastructure are principles we’ve seen in successful firms. Lastly, those who lead now will shape investor expectations for transparency and access in the future,” he added.
While, tokenization offers improved transparency and data tracking, liquidity and accessibility, lower costs and innovation, adoption barriers remain an influence on asset and wealth managers slower uptake, according to the report.
The majority (73%) of institutions surveyed said that regulatory uncertainty is the biggest challenge for tokenization adoption. Similarly, security concerns, infrastructure gaps, and a lack of common standards impact adoption plans.
Sanchez said that buy-side firms can overcome tokenization’s governance and operational barriers by revamping operational workflows, policies, and partnerships so that tokenized assets can be managed with the same rigor and compliance as traditional investments – which in turn can be reframed as a competitive advantage.
“On the operational side, instead of force-fitting blockchain into legacy architectures, a more advantageous goal would be to allow for fluid interoperability,” he said.
“Creating modular data architectures, automating KYC/AML processes through smart contracts, and establishing on-chain audit capabilities helps redefine how governance works in a more automated fashion,” he added.
“As regulation continues to be clarified, buy-side firms are well positioned to scale extremely fast; tokenization inherently allows these firms to combine product innovation, distribution reach and investor transparency in ways legacy systems haven’t been able to. The firms building in this space are defining the next chapter of capital markets,” he said.
According to Sanchez, buy-side firms should focus on enacting the right governance framework, building institutional grade infrastructure, redefining the client experience and partnering to achieve the needed scale and interoperability.
“They should engage, even if they start small. For example, actively develop roadmaps that are iterated as they learn more about the space,” he said.
“The leaders today often started with an initial use case – for example a Money Market Fund or a sleeve of a Private Credit Offering and used that product to educate themselves, identify partners that could assist and measure the impact,” he said.
“From there gauging market response strategies can be developed which define a product roadmap built around the scope of the change, the complexity of implementation and the impact / opportunity unlocked,” he concluded.
LSEG expands partnership with BlackRock, strengthening private markets data offering with new Preqin® data feeds
LSEG today announced an expanded partnership with BlackRock, strengthening LSEG’s private markets intelligence offering. Through a new advanced data integration, LSEG’s customers will gain deeper insights in private markets and alternative assets by accessing Preqin® data through LSEG’s flagship Workspace platform and Data & Feeds products. The addition of private markets data enhances LSEG’s unparalleled depth, breadth and quality of data across public and private markets and brings Preqin’s leading private markets data to a new category of investors.
David Schwimmer, CEO, LSEG, said: “This expanded collaboration with BlackRock is a clear demonstration of the value of partnership and access to trusted data and analytics. Investor demand for alternative data is accelerating. We have a unique combination of data assets and are delighted to add Preqin data to our leading data and content offering. This powerful combination is vital in enabling investment decisions that are based on the most accurate and timely information.”
Rob Goldstein, COO, BlackRock, said: “LSEG’s data has provided consistency and transparency for BlackRock and its customers for years. As private markets become more central to portfolio construction, this new Preqin data integration builds on our relationship, offering investors the insights they need to navigate complexity and uncover opportunity.”
In parallel, LSEG and BlackRock have also deepened their data integrations in two other areas. LSEG has renewed its multi-year partnership with BlackRock’s Aladdin® platform bringing platform access to LSEG’s Pricing and Reference Services data to power their investment decisions. BlackRock has also extended its partnership with FTSE Russell, enabling BlackRock to continue to licence the trusted index provider’s benchmarks to create a variety of investment vehicles for its clients.
Investors: Peregrine Riviere / Chris Turner – Investor Relations ir@lseg.com
About LSEG
LSEG is a leading global financial markets infrastructure and data provider, playing a vital social and economic role in the world’s financial system.
With our open approach, trusted expertise and global scale, we enable the sustainable growth and stability of our customers and their communities. We are dedicated partners with extensive experience, deep knowledge and a worldwide presence in data and analytics; indices; capital formation; and trade execution, clearing and risk management across multiple asset classes.
LSEG is headquartered in the United Kingdom, with significant operations in 65 countries across EMEA, North America, Latin America and Asia Pacific. We employ over 26,000 people globally, more than half located in Asia Pacific.
Redefining the Asset Servicing Industry Through Corporate Actions Innovation
By Ann Marie Bria, Managing Director, General Manager of Asset Services, DTCC
As the global financial markets continue to evolve and scale, the asset services industry is at a critical point where it must transform processes and technologies to successfully meet the growing needs of clients, regulators and counterparties. Today, asset servicing is performed by virtually all market participant firms, however, inefficiencies lie in legacy systems and manual, non-standardized processes across the asset life cycle, creating increased costs and risks. To address these challenges, firms must place a renewed focus on upgrading technology as well as modernizing processes to achieve more efficient, data-driven and resilient systems.
But, where to focus? The biggest opportunity in asset servicing right now is around corporate actions event announcements, a critical processing area filled with friction and fragmentation spanning data collection delays to information discrepancies. To drive improvements in corporate actions and address market demands, firms must modernize and evolve their methodology to embrace a direct-sourcing model that allows for the retrieval of critical event data leveraging standardization. DTC has already begun engaging with the industry to further innovate this critical part of the securities lifecycle by leveraging technology and redefining processes to enhance efficiency and accuracy.
Leveraging direct-sourcing models
Currently, the asset services industry is challenged by a lack of automation as well as redundant methodology to capture and manage corporate action announcements, relying on existing data validation models to compare disparate feeds that can introduce data discrepancies. A recent survey conducted by Value Exchange revealed that a single corporate action event involves numerous stakeholders, however, if a real-time, standardized platform is adopted to form a connected ecosystem, the industry could potentially save USD 15 billion annually.
To address these operational challenges and promote streamlined processes to capture reliable source data, DTC is actively working to digitize the securities lifecycle of the 1.4M eligible securities held at DTC by introducing a direct sourcing model for Corporate Action announcements. By capturing event data in a standardized way through issuers, agents and other responsible third parties, firms receiving this information can restructure how lifecycle events are processed. The result? Near real-time decision-making capabilities across asset managers and their clients. When investors engage directly with source event announcements from issuers and agents they benefit from more accurate and timely data, improved automation, lower risks and greater operational efficiency.
Benefiting from new technologies
As the asset servicing industry explores new ways to automate and improve their offerings, one of the most compelling developments across the industry is the widespread adoption of digital technologies like Artificial Intelligence (AI) and Machine Learning. These technologies are already playing a pivotal role in reshaping financial services and are positioned to be key enablers across the asset servicing space.
AI has the capabilities to redesign how information is captured and shared across corporate actions announcements. For example, when a bond is going to be called prior to maturity, there is documentation created by issuers and agents that is sent out to bondholders. This documentation contains critical data points that are needed to understand how this corporate action is going to impact the bond and its bondholders. The process today involves documents being sent via email, requiring manual data entry into systems.
Leveraging technologies, like AI, can reduce manual processes by automating data extraction and entry from documents to create these events, and overall improve how corporate actions announcements are managed. AI is also suitable for detecting anomalies, inconsistencies and inaccuracies within announcements, further enforcing the need for a standardized platform to automate how information is delivered. By implementing innovative solutions, firms can proactively address pain points by uncovering new insights and tailoring personalized offerings, enabling more advanced decision making.
Moving the Market Forward
DTCC is propelling this change by introducing a new standardized, direct sourcing platform for processing redemptions that will streamline corporate actions processes, benefiting agents by providing visibility into their securities, upcoming events and required actions while establishing a robust solution for market participants to access reliable information, enhance collaboration and improve the dissemination of corporate action announcements. Additionally, the development of a modernized platform will improve transparency and communication between agents and DTC by moving away from manual interactions that drain resources and introduce risks.
The asset servicing industry is at a crossroads, where volumes and non-automated processing are impacting operational efficiency and growing risk. Yet, automated technology and capabilities are poised to revolutionize this critical area of financial services. Together, the industry can build a more efficient, transparent and client-centric framework that powers its continued growth by embracing transformative technologies and new market infrastructure capabilities. This transformation is not just about adapting to the immediate needs of the industry- it’s about moving the entire market forward.