Commentary on the outlook for DTCC 2022 – Markets Media


Mike Bodson, President and CEO

In 2022, we expect to see more asset classes evolve into digital forms, which will create opportunities for companies like DTCC to support market transformation by creating the infrastructure for their safe and efficient processing. Market infrastructures are best positioned to mitigate the operational and counterparty risks associated with digital assets by establishing governance models and standardized post-trade processes, which will be essential for the development of deep, liquid and efficient markets and for the promotion of greater confidence from investors and regulators.

Murray Pozmanter, Head of Clearing Agency Services and Global Business Operations

The digitization of securities processing has intensified in recent years, and we expect this trend to continue in 2022, as innovation through new technologies and platforms paves the way for the evolution of the clearing and payment ecosystem. regulation. For example, we’re excited to bring new efficiencies to settlement through Project Ion, our alternative settlement platform that takes advantage of distributed ledger technology. At the same time, we will continue to improve existing products and services to deliver greater value to our clients, including our efforts to bring additional counterparties into the central clearing of US Treasuries.

· Andrew Gray, Managing Director, Group Chief Risk Officer

While organizations have prioritized risk mitigation and resilience throughout the pandemic, companies will need to further strengthen this target in 2022 because, as history has repeatedly shown us, Black swan events seem to occur more frequently than in the past. While the risk landscape will remain very uncertain next year due to the emergence of new variants of COVID and their impact on economic growth as well as ongoing inflation, supply chain shortages and increases in energy prices, risk management professionals need to remain vigilant and identify opportunities to further improve efforts to mitigate risk and build resilience to protect their businesses and the financial system as a whole from adverse effects. shocks and market disruptions. In addition, with the frequency of cyber attacks, ransomware and phishing attacks continuing to increase, the industry will need to focus on strengthening public-private partnerships, participating in war game exercises and investing in tools. and technologies as part of their security, recovery strategies and operational resilience.

· Matt stauffer, managing director, responsible for processing institutional transactions

We expect continued pressures from regulatory and industry requirements to continue to drive the need for higher levels of post-trade automation throughout 2022. Over the course of the year we will see the implementation of the Settlement Discipline Regime (SDR) of CSDR and Phase 6 of the Unmatched Margin Rules (UMR). For SDR, companies will seek increased efficiency and integration throughout the post-trade lifecycle to avoid penalties and fees associated with failed trades and late settlements. For UMR, companies will benefit from further automation of the collateral management process, helping affected organizations comply with the Phase 6 mandate while enabling them to use their available collateral more efficiently, which should improve capital and liquidity management.

· Chris Childs, Managing Director, Head of Repository and Derivatives Services

Over the next few years, DTCC and the industry will focus on a significant amount of regulatory change, as nearly all regulators change their rules for reporting derivative transactions, in part, to respond to recommendations from the CPMI and the IOSCO for greater harmonization of data to promote greater transparency. at a systemic level. We expect the CFTC to implement its changes first, during 2022, and more jurisdictions will follow in 2023 and 2024. Over the next year, we will also see the introduction of unique identifiers of product (UPI) in preparation for these regulatory changes as well as the definition of ISO 20022 schemes.

· Tim Lind, Managing Director of DTCC Data Services

In 2022, we expect to see continued demand for market transparency, and DTCC will provide more data products to meet this increased need. In particular, we will focus on repo, fixed income, ETF and other markets where transaction fragmentation occurs and, for these markets, we will provide companies with comprehensive information to support both valuations of risks and assessments as investment and trading decisions are made.

· Laura Klimpel, Managing Director of Fixed Income Clearing Corporation

In 2022, FICC will continue to lead the conversation around the evolution of the optimal market structure for US Treasuries. The unprecedented volatility of US Treasuries during the pandemic underscored the importance of making financial services operations more efficient, transparent and resilient. We have reached the point where we have a broad industry consensus on the benefits of increased central clearing of US Treasury transactions, which would ultimately reduce risk and improve stability across the industry, and we are look forward to working with key stakeholders to make this a reality.

· Michele Hillery, Managing Director of Equity Clearing and DTC Settlement

While companies are expected to remain under pressure to reduce costs and risks in 2022 due to ongoing economic and market uncertainty, DTCC will continue to advance efforts to move the U.S. securities settlement cycle to T + 1. This will provide capital savings to businesses while reducing systemic and operational aspects of the industry, especially during times of market turmoil. We are working closely with SIFMA, ICI, regulators and market players on this crucial initiative to strengthen market structure.

· Jennifer peve, Managing Director, responsible for strategy and business development

In 2022, the digitization of financial markets will continue to grow. DTCC will remain focused on identifying new ways to advance financial markets through innovation in market infrastructure, including our new digital securities management platform, which will bring automation, standardization, tokenization and efficiency to private markets by taking advantage of new technologies. As the industry advances in its digitalization journey, it is critical that the implementation of any change in post-trade infrastructure is inclusive and accessible, delivering responsible innovation for all, while enabling optional connectivity, ease of use and added value.

· Susan Cosgrove, Managing Director and Chief Financial Officer

Next year, we’ll be testing CFOs as we face uncertain market conditions and a host of economic challenges, including lingering inflationary pressures, supply chain issues, and new corporate taxes. . We haven’t seen a confluence of events like this in many years, and organizations will look to their CFOs for advice on a much wider range of issues. For CFOs, we will need to be even more agile and use multiple levers to ensure the profitability of our businesses while continuing to invest in strategic priorities.

· Keisha Bell, Managing Director and Head of Diversified Talent Management

Looking ahead to 2022, it will be essential for organizations to remain focused on diversity and inclusion while maintaining a collaborative working environment. Inclusion plays a key role in attracting and retaining talent and therefore has a direct impact on achieving a company’s ability to meet its business goals. Likewise, a robust environmental, social and governance (ESG) framework attracts potential workforce because it aligns with their values. Candidates increasingly want their employer not only to be responsible, but to do the right thing. To attract and retain the best talent and achieve optimal business results, DCI and ESG must continue to remain a priority within organizations.

· Lynn Bishop, Managing Director and Chief Information Officer (CIO)

Technological innovation will undoubtedly be a key theme next year as companies continue to modernize their legacy technologies and develop new capabilities to effectively meet the evolving needs of customers and industry, including customers and industry. Robust cross-platform strategies that reduce risk and improve time to market. At the same time, resilience will remain a key goal, with companies placing more emphasis on operational resilience and their ability to sustain their business operations. Specifically, the focus will be on application resiliency, where resilient capabilities are integrated at the application level through reusable standard architecture models. Finally, at the base of it all, companies are able to attract and retain top talent while building diverse and inclusive teams and identifying opportunities for employees to develop and expand their skills to grow. with business needs such as advanced technologies such as artificial intelligence, DLT and robotics.

· Marie Chinnici-Everitt, General Manager and Director of Marketing

Over the past few years, we’ve seen a paradigm shift as more and more marketing teams embrace digital methods to reach their customers and key stakeholders. A recent report from Forrester predicted digital marketing spend to reach $ 146 billion by 2023, with a compound annual growth rate of 9%. In 2022, we expect digital marketing to continue to grow, with organizations increasingly using digital technologies and platforms to promote their services. We also expect to see better alignment between the sales and marketing functions as companies consider the full customer lifecycle and address the importance of close collaboration between these teams to reach existing customers and new ones more efficiently and to drive business results.


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