日本におけるポストトレードサービスの未来

Tokyo Financial Information & Technology Summit (TFITS) is the only event in Japan that focuses on the opportunities and challenges that IT, data, and operations executives from financial institutions face.

TFITS is a conference hosted by WatersTechnology and sponsored by seven solution providers across APAC, with 30 speakers and more than 250 delegates. The 2023 in-person summit was held on June 28 and featured an agenda packed with program items featuring practical insights on a variety of topics:

• The keynote address, “Capital markets ecosystem on growth: Japan’s future prosperity.”
• The keynote panel, “Technology revolutionizes capital markets platforms in Japan.”
• “Redesigning technology to accelerate the digital transformation of the Japanese financial sector.”
• “Future of communication compliance.”
• “ESG factors are now at the heart of investment sector decision-making.”
• Post-trade Panel, “Future-proofing post-trade services in Japan.”
• “Building and optimizing low latency infrastructure for high-frequency trading.”
• “Disclosure highlight: The future of security and privacy in valiant new worlds.”

I had the privilege of moderating a main-stage strategic panel discussion titled “Future-proofing post-trade services in Japan.”

Our Esteemed Panelists:

• Emmanuel Petitjean | COO, Amundi Japan Ltd.
• Ken Utsunomiya | Operating officer, deputy chief process officer, head of global operations, Mizuho Securities Co., Ltd.
• Kei Miyazato | Head, clearing planning department (IT innovation), JSCC/ Japan Exchange Group

Panel agenda:

1. How can DLT help solve existing post-trade issues? What are some challenges firms need to be aware of when implementing DLT in a workflow or process?
2. How do good data management and analytics help simplify and add value to post-trade processes? How do firms achieve this?
3. Will hybrid clouds pave the way for the future of post-trade services? What is the future shape of utility services and new sourcing models in Japan’s capital markets?

At the beginning of the panel, Celent gave a short keynote on global capital markets trends in post-trading services and financial market infrastructures (FMI).

Moderator’s Keynote: Future-Proofing Post-trade Services in Japan

1. Technology Trends in Global Post-trading Services and Financial Market Infrastructures (FMI)
2. Initiatives by Japanese Market Participants

Trading volumes of financial market infrastructure (FMI) entities such as exchanges, clearinghouses, and settlement services have surged across asset classes as investors seek to hedge risk in their portfolios. The significant growth in revenues of exchanges is attributed to market volatility and rising interest rates. Meanwhile, FMI is pursuing technology modernization and efficiency reforms, including the adoption of next-generation technologies, in order to maintain a presence in an increasingly digital ecosystem.

As FMIs continue to evolve to support new business models, products, and asset classes while adapting to the growing interest in digital assets by institutional investors and competition from innovative fintechs, partnerships and acquisitions are progressing to close the technology gap. A common theme among all market participants is the attempt to monetize data as a commercial asset, and FMIs need flexible technology.

Flexible and agile technology methods are key to overcoming the uncertain regulatory environment. In the upcoming post-trade market, three events with significant global impact are: 1) discussion of the implementation of CSDR (Centralized Securities Depository Regulation) to encourage investment in new technology; 2) SFDR (Sustainable Finance Disclosure Rule) accelerating ESG-related technology integration on the buy side; and 3) FMIs using technology to improve their business operations. Trends toward shorter settlement cycles in the US, Canada, and India will encourage further automation of trade processing.

What do Japanese market participants think about future capital market regulation and FMI updates? The results of Celent’s fall 2022 survey, Japan’s Capital Markets Platforms Innovated by Technology, convey the commitment of Japanese market participants to overcome difficulties and pave the way for a post-pandemic capital market. This panel also addressed the challenges and priorities of dealing with institutional reform in the Japanese market.