“The agreement we have established with Delta Capita opens up new opportunities for us to enhance our derivative post-trade services for our valued clients,” said Karen Everingham, head of markets and securities services operations at HSBC.

Delta Capita has also expanded its operational footprint through the establishment of hubs in Kuala Lumpur and Manila, helping to allow for 24/7 support for its clients worldwide.

In addition, Delta Capita stated that by standardising post-trade processes and helping to reduce industry costs, this approach also seeks to address complex regulatory requirements. 

“We are delighted to have been appointed by HSBC to provide operational services,” said Joe Channer, chief executive at Delta Capita.

“This collaboration reflects our expertise in delivering cost-efficient, scalable post-trade solutions and reaffirms our commitment to driving innovation in financial services.”

The move follows previous developments from Delta Capita, including the acquisition of LSEG’s CLM technology, as well as the launch of its MACH Distributed Ledger product suite, which offers capital markets blockchain software.

The post Delta Capita to deliver post-trade OTC derivative services for HSBC appeared first on The TRADE.

We think that the introduction of an anonymised, single-level pre- and post-trade consolidated tape will trigger innovations at trading venues. A key part of these innovations will be how retail orders are executed in Europe, as a consolidated tape becomes a benchmark for retail investors for best execution. We expect to see innovation in dark trading, which has not had a shake-up for a while, as AI is embedded into order matching algorithms, resulting in better execution outcomes.

If the current low-volume environment in Europe continues, tied to GDP and economic growth, we will see renewed effort from policy makers to address some of the structural problems in Europe. They will need to take the Capital Markets Union more seriously and remove the frictional cost of trading between countries. As the focus of regulation shifts from Brexit to competing and reducing fragmentation, we will see more constructive regulatory dialogue between the UK and EU, based on the recently signed Memorandum of Understanding (MoU) on cooperation in financial regulation.

Niels Brab, chief regulatory officer, Deutsche Börse Group

With a new EU legislative period on the horizon, a decisive year lies ahead that will be full of opportunities to advance on key challenges. In light of geopolitical realities, sluggish economic growth, and constraint public finances, it will be particularly critical for the EU to ensure a new vision in regard to the Capital Markets Union. Despite decades of efforts, the EU’s capital markets remain underdeveloped, and their size does not correspond to the magnitude of the EU’s economy.

A new vision should be paired with a profound reflection around the open strategic autonomy. We should learn from best practices and centrally embed them into our thinking. Establish an EU equity fund, revitalise our securitisation markets, boost our primary markets and IPO ecosystem, address fragmentation, tackle incentivisation elements like taxation – and ensure that citizens truly endorse our markets by guaranteeing a better participation.

Michael Robertson, head of UK consulting, Delta Capita 

In 2024, the global capital markets landscape looks set for further transformational change. Against the backdrop of an uncertain macro-economic climate, we expect market disruption through convergent regulatory scrutiny, technology advancement and an ongoing focus on sustainability. Markets will be shaped by the impacts of a shortened settlement cycle. Whilst initial focus will be on T+1 in the US, governing authorities must weigh up the cost-benefit of an accelerated cycle whilst maintaining a stable, efficient, and competitive European capital market.    

Technology advancement continues at a pace. Decentralised finance (DeFi) and tokenisation represent a paradigm shift in financial services and there is widespread expectation that AI will bring improved capital efficiency and risk management. Regulation must establish a framework that encourages innovation while protecting consumers and maintaining financial stability. Cyber security will remain a top priority to ensure the industry has defence mechanisms to safeguard sensitive data. ESG considerations will play an increasingly pivotal role. Institutions will integrate sustainability practices into their operations, reflecting a growing awareness of the environmental and social impact of investments.

Navigating this complex web of factors will require collaboration amongst industry practitioners, technologists and policymakers to understand, shape and design innovative solutions to common business problems.

Stephanie Eckermann, chief executive, Clearstream Banking AG

Securities services especially have been largely untouched by disruption in the last few years – partially due to protection of the industry by regulation. But we are seeing changes. We see the entire post-trade space becoming more and more of a platform business. The new digital securities world, and the new digital customer experience afforded by modern technology are driving this trend.

As we move into a world with digitisation, open API and the glue provided by hyperscalers, I envisage an interoperable platform of key market players, delivering a truly seamless global experience to investors. This experience will utilise advanced data tools to offer greater insight and enable better investment choices. To be the winners, platforms will need both the scale to fund the investments needed for change and the right culture to collaborate. Those that continue to operate behind their own protectionist garden walls will ultimately wither.

The post The TRADE predictions series 2024: Market Structure – industry unification appeared first on The TRADE.

Philip Coleman, chief technology officer at Delta Capita, said: “Today’s launch of MACH is a clear demonstration of Delta Capita’s commitment to reinventing the financial services value chain, and being at the heart of what is an incredibly exciting next chapter for capital markets and technology innovation. We look forward to onboarding both new and existing clients onto our platform and to take their transaction processing to an entirely new level of efficiency.”

The new offering consists of six new distributed ledger technology solutions, specifically: MACH Optimise, MACH Tokenise, MACH Ledger, MACH Assign, MACH Pass, and MACH Bridge.

‘Optimise’ is a settlement platform which it is estimated could reduce current transaction fees by a minimum of 25%. ‘Tokenise’ – able to be deployed alongside existing infrastructures – allows for the minting, transferring, locking, and burning of tokens. The ‘Ledger’ solution processes thousands of transactions per second, while ‘Assign’ is a digital issuance and digital custody solution.

In addition, ‘Pass’ works to accelerate KYC checks and enable the creation and secure storage of digital passport records, while ‘Bridge’ as a DLT interoperability solution, brings together different platforms and systems to create a more interconnected financial ecosystem.

Alan Philpot, chief product officer at Delta Capita, said: “Each of the DLT solutions that we are bringing to market have been uniquely designed to drive significant operational efficiencies, enhanced security, increased liquidity and improved cost savings for our clients. 

“By combining Delta Capita’s MACH technology solutions with our team’s deep technical and consulting expertise, we are ready to help clients meet with ease today’s evolving regulatory and costs reduction demands.”

Earlier this year, Delta Capita acquired the distributed ledger technology of SETL in a move aimed at building the next generation of its capital markets ecosystem.

The post Delta Capita unveils DLT product suite appeared first on The TRADE.

Mark Wilcox joins Plato as COO from business and technology consultancy firm Delta Capita, having previously held roles in operations and programme management at Deutsche Global markets and Deutsche Asset and Wealth Management.

Deutsche Asset Management’s former global head of equity trading, Mike Bellaro, departed the company earlier this year to lead Plato Partnership as its first chief executive officer.

Plato stated that the appointment of Wilcox as COO will further improve its organisational structure, as it seeks to drive the identification of equity market structure issues and establish partnerships with industry leaders.

“Mark’s extensive industry expertise, renowned stewardship, and ability to deliver strategic objectives over many years makes him uniquely well-suited to the challenges of this role,” Bellaro commented.

Delta Capita has had a close relationship with Plato Partnership after it was selected in 2016 to oversee the group’s corporate governance, operations and management. Delta will continue to maintain its relationship with Plato Partnership through advisory services and support in developing upcoming initiatives.

“On behalf of all at Delta Capita, I would like to congratulate Mark on his selection as COO to the Plato Partnership and wish him every success in the role,” Joe Channer, CEO at Delta Capita, added.

“His selection and release to the Partnership is a testament to Mark’s contribution as engagement lead for Plato whilst at Delta Capita and to the strength of our business partner relationship.” 

Wilcox concluded that the recent appointment of Bellaro as Plato CEO, alongside Union Investment’s Christoph Hock as buy-side co-chair, and Barclays’ Nej Djelal as sell-side co-chair, reflects Plato’s commitment to deliver benefits to the market.

“I believe we have a unique opportunity to shape the future of market structure using the significant knowledge and influence of our member firms and partnering with leading industry providers,” Wilcox added.

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Credit Suisse has appointed Delta Capita to manage its structured products business across Europe, the Middle East and Africa.

Delta Capita will take on a number of the existing Credit Suisse team as part of the arrangement to accelerate the growth of its structured product and governance managed service business.

Larry Fletcher, head of the solution’s business at Credit Suisse, explained new regulation has led to an opportunity for the industry to work together to improve standards and lower costs.

“We have seen real commitment across the structured products industry to improve product governance standards and the quality of products for end clients,” he said.

In September last year, Plato Partnership outsourced its management to Delta Capita, including the oversights of its research and analytics unit, MI3.

Delta Capita had been heavily involved in the Plato Partnership, carrying out the role of advisor and project delivery in the early stages of its launch.

Joe Channer, chief executive officer of Delta Capita, said working with clients to support specific needs provides an opportunity to “to deliver a utility for structured product production.”

He added that he expects the agreement with Credit Suisse to “result in more consistent standards, lowering of costs and improving efficiencies.”

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Plato Partnership has announced it has chosen Delta Capita to overtake its corporate governance, operations and management.

Delta Capita has been heavily involved in the Plato Partnership, carrying out the role of advisor and project delivery in the early stages of its launch.

As part of the arrangement, Plato’s independent research and analytics unit Market Innovator (MI3), will also be managed by Delta Capita.

An executive at Plato said Delta’s “proven track record in managing consortia and maintaining independence,” made it the “stand out choice”.

The announcement follows news of Turquoise rebranding its block trading and uncross services under the new name ‘Turquoise Plato’.

The rebrand will see Turquoise Block Discovery and Turquoise Uncross renamed as Turquoise Plato Block Discovery and Turquoise Plato Uncross respectively.

Mike Bellaro, co-chair of Plato and global head of equity trading at Deutsche Bank, said the formation of Turquoise Plato “lays the foundations for Plato to drive forward future industry initiatives.”

He added: “This collaborative initiative will aim to improve European equity markets in the interests of end investors based on a not-for-profit ethos.”

Chief executive office at Delta Capita, Joe Channer said the firm’s knowledge and experience in managing consortia, “will serve the project well as it progresses.”

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