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Jumping ahead in time, covid-19 was another external factor which put a lot of pressure on assetmanagers in terms of how and where work was being done. For a lot of managers, FX can be considered an uncompensated risk since you’re not really being paid to manage the FX.
European assetmanagers moved staff to the US to manage foreign currency risks during the US 4PM to 6PM time zone rather than late at night in Europe.” Mutual funds and ETFs in the US have largely adopted a one-day settlement cycle by business practice, aligning portfolios from treasuries to equities. Gensler said.
Whilst there will be continued focus on top-down changes, we will continue to advocate for market-led approaches which strengthen the existing competitive framework, particularly in cash equities clearing, allowing participants to prioritise initiatives which enhance their operational and capital efficiencies.
There are a few big regulatory changes which are probably not going to go live in 2025, but will need technological and infrastructure-related preparation and change before 2026 and 2027. We already know the date 11 October 2027 less than three years away and people will need time to prepare, which means that the work should starts now.
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