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FinTech
Technology is reshaping the way financial markets operate. FinTech, a term broadly used to describe innovation in financial services enabled by technology has attracted much attention among market participants, regulators and policy-makers alike.

ICMA’s engagement spans (i) primary markets, (ii) secondary markets, (iii) repo markets and (iv) the area of post-trade.

FinTech and market electronification are addressed through various committees, working groups and work streams as well as through bilateral discussions with member firms and technology providers.

Primary markets:

Secondary markets:
  • The Electronic Trading Working Group (ETWG), which comprises buy-side and sell-side heads of fixed income trading or market structure.
  • The Platform Working Group (PWG), which brings together non-market makers ie brokers and broker-owned Multilateral Trading Facilities (MTFs), exchange-owned MTFs and future “Organised Trading Facilities (OTFs)” (eg interdealer brokers).
Post-trade:



Publications:

October 2017
Market electronification and FinTech

July 2017
ICMA’s engagement on market electronification and FinTech
FinTech: Government bonds in Kenya




Resources:

Distributed Ledger Technology (DLT): Over the past months, DLT often referred to as Blockchain, has stirred a lot of interest and enthusiasm across the financial industry. Although discussions are still at a very early stage, DLT is believed to have the potential to substantially change the way financial markets are operating today, promising important cost savings and efficiency gains, in particular in the post-trade space.

ETP Mapping Directory: In light of the shift towards electronification, ICMA conducted a mapping exercise of electronic trading platforms (ETPs) and information networks. This initiative resulted in the ETP Mapping Directory, a single source of information on currently over 30 infrastructure providers, which is updated on a regular basis and covers all cash bond classes.

ICMA Ops FinTech mapping directory: ICMA’s ERCC Ops FinTech Working Group (WG) has published a mapping directory of over 80 technology solutions available for repo and cash bond operations. The directory is divided into 10 categories including collateral management, exposure agreements and reconciliations. It provides information on how each solution can be used, for example at which stage of the trade lifecycle, whether for cleared or uncleared transactions and where the solution sits within the IT infrastructure. The directory is intended to be a living document and will be updated on a regular basis.




Contact:

Gabriel Callsen
Associate, Market Practice and Regulatory Policy
Direct line: +44 20 7213 0334
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