数字资产、分布式账本技术和资本市场的未来报告（英）-世界经济论坛-2021.5-100正式版

DigitalAssets,DistributedLedgerTechnologyandtheFutureofCapitalMarkets

INSIGHT REPORT

MAY 2021

Contents

Foreword

Context

Introduction

Keyinsights

1.Background

Businessandtechnologydevelopmentsincapitalmarkets

OverviewofDLTinthecapitalmarketscontext

Timelineofmajortechnical,regulatoryandbusinessdevelopments

2.DLTanddigitalassetsincapitalmarkets

Spectrumoffuturescenarios

DLT-relatedconsiderationsfordifferentcapitalmarketsactors

FrameworkfordifferentapproachestoDLTsolutions

32 3.Usecaseanalysisbyassetclass/productline

Equitymarkets

Debtmarkets

Securitizedproducts

Derivatives

Securitiesfinancing

Assetmanagement/fundadministration

Enablementusecases

Conclusion

Contributors

Acknowledgements

Endnotes

Cover:GETTY/Piranka

Inside:allGETTY/Poganka06,MicroStockHub,DKosig,

TetianaLazunova,MicrovOne,Maxger,Enjoynz,Filo,Maxger,

AF-studio,Filo,KotoFeja

©2021WorldEconomicForum.Allrightsreserved.Nopartofthispublicationmaybereproducedortransmittedinanyformorbyanymeans,includingphotocopyingandrecording,orbyanyinformationstorageandretrievalsystem.

DigitalAssets,DistributedLedgerTechnologyandtheFutureofCapitalMarkets 2

Foreword

RoyChoudhury BenWeisman

ManagingDirector InitiativeLead,

andPartner FinancialInnovation

BostonConsultingGroup WorldEconomicForum

Inrecentyears,thefinancialinstitutionscomprisingthecapitalmarketshavebeguntoapproachdigitaltransformationwithalevelofurgencypreviouslyseenonlyinconsumer-facingfinancialservices.Theneedtoimproveclientservicedelivery,achievegreaterefficiencyandenablenewservices(e.g.throughmonetization

ofdata)haveconvergedonimperativesforallcapitalmarketsexecutivestoexplorehowtechnologyshouldbeusedtoredesignproductofferingsandoperations.

Atthesametime,distributedledgertechnology(DLT),ofwhichblockchainisthemostwidelyknownexample,hasgonethroughseveralpendulumswingsintermsofindustryandpublicinterest.Dependingonone’sperspective,thistechnologycoulddisintermediatethecapitalmarketsasweknowthem,radicallysimplifyoperationsforleadingcapitalmarketsplayers,helpexpandaccesstomarketsforsmallbusinessesandretailinvestorsorfadeintoirrelevance.

SincetheWorldEconomicForumpublishedTheFuture

ofFinancialInfrastructurein2016,wehaveseenrelatively

littleoftheblockchain-enabledtransformationexploredin

thereport.Yetwearepotentiallyapproachinganinflection

point,withmeaningfulDLTusecasesgoingliveandmany

institutionsacknowledgingthatthistechnologywilllikely

playsomeroleinthefutureofcapitalmarkets.Thisreport

exploresthevariouswaysinwhichthistechnologyis

startingtobeused,aswellasthechallengesinvolvedin

attemptingindustry-widetransformation.

ConsistentwiththeWorldEconomicForum’s

multistakeholderapproach,theinsightspresentedhere

arebasedondialoguesandinterviewswithexpert

practitionersfromacrossthecapitalmarketsecosystem.

Wethankallwhoparticipatedinthisinitiativeandshaped

ourunderstandingofthisspace.

DigitalAssets,DistributedLedgerTechnologyandtheFutureofCapitalMarkets 3

Context

Distributedledgertechnology(DLT)*hasexistedformorethanadecade.Fornearlyaslong,advocateshavearguedeitherthatthistechnologycouldbeusedbyfinancialinstitutionstoradicallysimplifyoperationsorthatitsdecentralizedcapabilitieswouldenableanentirelynewfinancialsystem,whereincapitalcouldflowwithouttraditionalintermediaries.DLT’sdetractors–perhapsjustasnumerous–havepointedoutchallengesinbothofthesevisions,stemmingfromthepotentialcostsoftransformation,thecapitalmarkets’relianceonrelationshipsoftrustandtheexistenceofothertechnologiesthatmightbebettersuitedforcertainuses.Inthiscontext,firmshaveinvestedheavilyinDLTefforts,withawiderangeofstrategicmotivations.

Overthepasttwotothreeyears,severalregulatorshaveexpressedgreatercomfortwiththistechnology,andsomeDLT-enabledproductsandserviceshavemovedfromexplorationandexperimentationtocommercialization.Ithasbecomeclearthat,atamarket-widelevel,DLToffersthepotentialforsignificanttransformation.Thisreportexploreswhathasbeenlearnedfromtheseefforts.Whileultimatelyneutralastowhatthecapitalmarketsofthefuturewilllooklike–andwhatroleorroleswillbeplayedbyDLT–itaimstoprovidecapitalmarketsexecutivesandregulatorswiththestrategicinsightsneededtounderstandthecurrentstateofuse-casedevelopmentsandpotentialfuturescenarios.

*Thispaperusestheterm“DLT“torefertodistributedledgertechnologyandblockchain.

Whatusecases

WhichDLTuse

havebeen

casesaregaining

developedacross

traction,inwhich

assetclasses,

jurisdictions

andhowarethey

andwhy?

beingadopted?

Whatarethe

Howareindustry

impedimentsto

dynamics–

adoption,andwhat

collaborationand

hasbeenlearned

competition–

asaresult?

shapingadoption

anddemand?

DigitalAssets,DistributedLedgerTechnologyandtheFutureofCapitalMarkets 4

Introduction

Overthepastyear,financialservicesandtechnologyexpertswereengagedinaseriesofglobalworkshopsandexpertinterviews

Globalworkshops*

Eightworkshopswereconductedoverthecourseof2020–allvirtually.Thesebroughttogetherexecutivesfrombanks,assetmanagers,exchangesandinfrastructureproviders,financialtechnologycompaniesandregulatorsforaseriesofinteractivediscussions.Three

workshopswerefocusedondevelopmentsfromaregionalperspective(NorthAmerica,EuropeandAsia-Pacific),whilefivewerefocusedonemergingusesofDLTwithinspecific

assetclassesorproductlines(equities,debt,securitizedproducts,derivativesandsecuritiesfinancing,andassetmanagement).

BIS

Expertinterviews*

In-depthinterviewswereconductedwithalmost200executivesfromleadingfinancialservicesandfinancialtechnologyfirms,aswellaswithexpertsfromoutsidetheindustry.

LiquidMortgage

Survey*

Morethan60firmsparticipatedinananonymizedsurveyfocusedondetailsofDLTusecasesthattheirfirmsaredeveloping.Whilenotascientificsampling,thissurveyenabledtheteamtoeffectivelymapoutwhereDLTexperimentsarebeingconductedwithinthecapitalmarkets.

*PleaseseeAcknowledgementsforalistofindividualswhoparticipatedinworkshopsandinterviews.

TheinclusionofcompanycasestudieswithinthisreportdoesnotreflectanendorsementofthecompanyoritsproductsandservicesbytheWorldEconomicForum.

DigitalAssets,DistributedLedgerTechnologyandtheFutureofCapitalMarkets 5

INTRODUCTION

Thisreportwillprovideexecutives,regulatorsandpolicy-makerswithinsightsontheemergingusesofDLTincapitalmarkets

Thisreportwill…

–Exploremanyofthewaysinwhichcapitalmarketsinstitutionsandtechnologyfirmsareexperimentingwithorbuildingproductsenabledbydistributedledgertechnology

–IllustratehowindividualDLTusecasesmayaddresschallengesorinefficienciesinspecificmarkets

–Shareinsightsfromrelevantexpertsonpotentialpathsforward,challengesorenablersfortheseusecases

–Highlightexamplesoffirmsbringingspecificusecasestomarket,withsummarydetailsoneach

Thisreportwillnot…

–FocusonDLT-relatedusecasesoutsidethecapitalmarkets,includingpayments,digitalcurrencies,lending,workingcapitalsolutionsandtradefinance(exceptastheyrelatetospecificcapitalmarketsusecases)

–Explorecryptocurrencies,non-fungibletokens(NFTs)ordecentralizedfinance(DeFi)applications

–Providedetailedtechnicalexplanationsoffinancial,operationalortechnologicaldimensionsofusecases

–Evaluateusecasesormakerecommendationsonstrategiesthatindividualinstitutionsshouldpursue

Thisreportseekstohelp…

–Strategicdecision-makersatfinancialinstitutionstounderstandthepotentialrolesDLTisbeginningtoplayinthecapitalmarkets,criticallyassessdifferentusecasesandexplorehowtheirinstitutionmightoperatewithindifferentfuturestatevisions

–Regulatorsandpolicy-makerstounderstandhowfinancialinstitutionsindifferentjurisdictionsareadoptingDLT-enabledsolutionssothattheymaycraftresponsesthatappropriatelybalanceinnovationandmarketsafeguards

DigitalAssets,DistributedLedgerTechnologyandtheFutureofCapitalMarkets 6

Keyinsights

DLTisbeginningtoreshapecapital

markets,butthefutureisuncertain

1

Marketforces,supportedbyregulatoryandtechnicaldevelopments,arepushingparticipantsincapitalmarketstodigitizeandconsidertheuseofdistributedledgertechnology(DLT).Keytrendsincludegrowinginstitutionalandregulatorycomfortwithblockchaintechnology,thepotentialforcentralbankdigitalcurrencies(CBDCs)

inseveraljurisdictions,andcommercialdynamics,suchascostpressuresandclientserviceexpectations.

2

TheunderlyingchallengesthatDLTistryingtosolveincapitalmarketsarerealandsubstantial.Inefficienciesvarybyassetclassandjurisdiction,butlegacyprocessesandtechnologysystemshavecreatedcomplexity,opacityandfragmentationacrossmarkets,whichlikelyhasameaningfulimpactoncosts,marketliquidityandfirms’balancesheetcapacity.

WhileDLTisnotnecessarilytheoptimaltechnologyoptionforeveryproposedusecase,experimentsareprovingitsviabilityinaddressingsignificantoperationalinefficienciesandincreasinglyimprovingbalancesheetmanagement.

3

Afteryearsof

experimentation,manyDLT

andsmartcontractuse

casesincapitalmarketsare

liveacrossjurisdictions.Market

participantsarelaunching

solutionsdesignedtoimprove

existingprocessesfordefined

ecosystemsinnumerousasset

classesandinsomecases

arereimaginingvaluechains

asweknowthemtoday.

However,grandvisionsof

disintermediationortotal

digitaltransformationat

scalearestillfarfrom

beingrealized.

4

WhilemostemergingDLTusecasesarebeingdevelopedcollaboratively,thereisnoindustry-widevisionofthefutureinmostjurisdictions–dueinparttosubstantialcompetingincentivesandtheriskofvaluemigrationacrossmarketparticipants–potentiallylimitingtheabilitytoscaleupmanysolutions.

5

Whilegreaterdigitizationisinevitable,substantialheadwindsmaycontinuetolimitadoptionofDLTsolutions,includinglimitedleadershipbuy-inanduncertainbusinesscases,theneed

forsignificantrestructuringofbusinessoperations,challengesrelatingtobridginglegacysystemswithnewsolutions,andperceptionsaboutregulatoryuncertainty.

DigitalAssets,DistributedLedgerTechnologyandtheFutureofCapitalMarkets 7

KEYINSIGHTS

SignificanttailwindsmaysupportadoptionofDLTsolutionsincapitalmarkets

Mutuallyreinforcingdevelopmentssupportingfinancialinstitutions’explorationofDLT…

Market

Policy

Technical

developments

developments

developments

Growingretailand

Growingregulatory

Technical

institutionalinvestor

comfortwithDLT

advancementsinDLT/

interestindigital

acrossseveral

blockchain:growing

assets,mostnotably

jurisdictions

maturity,platform

cryptocurrencies

consolidationand

improvementsin

interoperability

Developmentsin

Seriousexplorationof

Institutional-grade

adjacentmarkets,

CBDCsinnumerous

infrastructureindigital

includingstablecoins

jurisdictions,including

assetmarkets

andDLT-based

somebasedonDLT

tradefinanceand

paymentsolutions

…areintersectingwithbroadcapitalmarkettrends

Increasedcompetition,includingtheriseofdigitaldisrupterschallengingtherolesoftraditionalintermediariesandserviceproviders

Emergenceofabifurcatedclientservicemodel,withafocusondigitizationandsimplificationforallclienttypes

Balancesheetcapacitycontinuingtobeamajorconstraint

AccelerationofdigitaladoptionduetoCOVID-19pandemic

Sustainedcostpressuresacrossthevaluechain

Acrossthecapitalmarketsecosystem,broadtrendsareacceleratingthedigitalpush

DigitalAssets,DistributedLedgerTechnologyandtheFutureofCapitalMarkets 8

KEYINSIGHTS

DLTmaybeabletoaddresssignificantchallengesacrossthecapitalmarkets

Thescaleandnatureofinefficienciesvariesacrossmarkets,butlegacystructurestendto:

–Requirefirmstoindependentlymaintainsiloedrecordsoftransactions,securitiesandotherdata,witheachinstitutionindependentlyprocessingeventsandsubsequentlyreconcilingrecords.Thisaddscomplexitytooperations,increasestheriskoferror,limitstheabilitytoautomateprocessesandlikelyaddscostsacrossthecapitalmarketsecosystem

–Limittheflexibilityoftransactionwindowsandtimeframesinordertoaccommodatetheneedforsequentialprocessingandverification.Whilemanyhighlightthecostsofliquidityneededtofundmulti-daytradesettlementcycles,thisdynamicalsolimitstheabilitytooptimizebalancesheets,asfirmsareunabletorapidlymovesecuritiesandcashtoaddressfundingandliquidityneedsandavailability

DLTisprovingwell-suitedforaddressingoperationalinefficiencies,andisincreasinglydemonstratingthepossibilityofbetterresourcemanagementacrossfirmsandmarkets:

DLT

Createtrustinareal-

Automateand

Enableassetstobe

capability

time,sharedsourceof

synchronizebusiness

moreefficientlyand

truthacrossmultiple

processesacross

flexiblytransferred

partiesinamarket

entitiesusing

acrossentities

ortransaction

smartcontracts

Business

Minimizetheneed

Reducemanual

Unlockliquidity

benefit

forreconciliations

interventions,riskand

andenablebetter

andmanualdata

costacrossprocesses

balancesheet

verifications

managementacross

andbetweenfirms

DLTuse

Mortgage-backed

Derivativespost-trade

Intradayrepousing

case

securitieswith

life-cyclemanagement

tokenizedcollateraland

example

underlyingloandata

platforms

digitalcash

recordedonDLT

DigitalAssets,DistributedLedgerTechnologyandtheFutureofCapitalMarkets 9

KEYINSIGHTS

DLTapplicationsaregoingliveacrossthecapitalmarkets

Afteryearsofexperimentation,financialinstitutionsandtechnologyprovidershavebegun

tolaunchDLT-basedproductsandprojects.Whilecapitalmarketsarenotnecessarily

movinginexorablytowardsaglobal,fullydigitized,DLT-basedutopiaasmanypredicted,

DLT-enabledusecasesarebecomingarealityacrossarangeofassetclasses,business

casesandecosystems.

Examplesofusecasesgainingtraction(asofApril2021)

Proofofconcept

Launchscheduled Liveinproduction

Corporatebond

originationworkflow

Publicfunddistribution

Publicfundadministration

Soon

Majormarket

infrastructure

replatforming

usingDLT

Soon

End-to-enddigitalmarket

infrastructurefrommajor

infrastructureprovider

Soon

Equity/creditderivatives

life-cyclemanagement

Soon

Live

Bilateral/

Live

Securitization

intracompany

Corporatebond

ofblockchain-

repo

issuances

originatedloans

Live

Intraday

Live

repo

Privateequity

tokensissued

onblockchain

Soon

Cross-border

Live

collateralmobility

Privatefund

administration

anddistribution

DigitalAssets,DistributedLedgerTechnologyandtheFutureofCapitalMarkets 10

KEYINSIGHTS

Strategicconsiderationsaredrivingdivergentvisionsofthefuture

Institutionsaredecidingwheretoinvestacrossarangeofstrategicchoices,including:

Digitalproductstrategy

Marketselection:focusondevelopingsolutionsforindividualassetclassesordevelopanasset-classagnosticinfrastructuresolution

Valuechainbreadth:focusonaddressingchallengesinonesliceofthevaluechainorbuildanend-to-endsolution

Degreeofchange:attempttoimproveexistingprocessesorfundamentallydisruptthemarketasitexiststoday

Technologyfit:identifywhetherDLTisthemostappropriatetechnologyforaspecificsetofchallengesandhowitwillbeused

Go-to-marketstrategy

Commercialandtechnicalapproach:attempttobuildanewecosystem,workwithanexistingsetofpartnersoranotherapproach

Transformationmanagement:determinewhethertobuildanewsystemandmigrateallparticipantsorbuildandoperateinparallel

Interoperability:determinewhetherandhowsolutionswillintegratewithotherplatformsandsystems,technicallyandcommercially

Butasdifferentplayersembarkonvaryingstrategies,thesechoicesarecreatingtensions:

Redistributionofvaluepoolsandthe“collaborationparadox”

DLT-enabledtransformationcouldmaketheindustrymoreefficient,butitwouldlikelyshiftvaluepoolsamongbothincumbentfirmsandnewentrants.Giventhepotentialfornewbusinessopportunitiesandthepossibledisintermediationofsomeexistingroles–aconceivablerealityasregulationsadapttoDLT–firmsmaybeincreasinglyreluctanttoparticipateincollaborativeinitiatives.Withoutcollaboration,however,ecosystem-widevaluewillbedifficulttoachieve.

Acomplexpatchworkofinitiatives,spanningdifferentinstitutions,businesslinesandgeographies,limitingtheabilitytoreachscale

SincemanyDLT-basedinitiativeswouldindependentlyrequireasubstantialleveloftransformation,institutions’focusonalimitedsetofinitiativesorconsortia–whichmakessensefromtheperspectiveofanyindividualfirm–canpreventthecross-institutionalignmentneededformanyusecases.Similarly,whileregulationscanhelpdefinetheguardrailsforinnovation,insomecases,vastlydifferentregulatoryframeworkshaveledtoverydifferenttechnologyneedsindifferentmarkets.

Short-termvs.long-termstrategies

Whileachievingshort-termobjectiveswillbuildcomfortwiththetechnology,itmay,counter-intuitively,inhibittheappetiteforlarge-scaletransformation.Giventhelongpathwaytotransformingentiremarkets,lackofbuy-inforlong-termsolutionsmaylimittheupfrontinvestmentneeded.

DigitalAssets,DistributedLedgerTechnologyandtheFutureofCapitalMarkets 11

KEYINSIGHTS

ChallengestoDLTadoptionremainsubstantial

Businesscaseandleadershipbuy-in

ManyDLTprojectsarefocusedonachievingalong-term(i.e.five-plusyears)valuepropositionbutrequiresubstantialupfrontinvestmentandindustry-widetransformationintheshortterm.Wherethebusinesscaseislong-term,projectsmustbechampionedbyleaderswiththeauthoritytoinfluenceindustry-widealignmentinordertomoveforward.Wherethebusinesscaseisunclearorthetechnologyisnotnecessarilyfit-for-purpose,leadersshouldconsiderwhethertheseprojectsaredivertingenergyfromotherworthwhiledigitizationefforts.

Bridgingtheoldwiththenew

Maintaininglegacysystemswhilebuildingandscalingnewsolutionsislikelytobecostlyandcomplex.WhilecommontechnicalandfinancialstandardsareessentialformanyDLTusecases,theymayalsoproveessential

forenablinginteroperabilitybetweenlegacysystemsandDLT-basedsolutions.Nevertheless,institutionsandmarketsattemptingparallel(DLTandlegacy)infrastructureswillhavetoeffectivelymanagecostsandrisks.

“Chickenandegg”dilemmas

Formostusecases,achievingscalemaybemorechallengingthanreachingproduction.

Exceptforcompletelyinternalsystems,allusecaseswillrequirea“minimum-viableecosystem”ofparticipants(e.g.atleastoneofeachoftherelevantpartiesforacertaintypeoftransaction).However,someDLTsolutionswillcreatenewmarketsthatwillexistinparalleltotraditionalmarkets.Withneitheranactiveinvestorbasenoranactiveissuerbase,theseparallelmarketsmaynothaveaclearpathtoliquidity,therebylimitingthewillingnessofinvestorstoparticipateorissuerstoissueinthesemarkets.

Coordination

challenges

combinedwith

limitedrisk

appetites

Inmanycases,realizingtheanticipatedbenefitsofDLTwillrequiresignificantrestructuringofroles,processesandoperations,potentiallyintroducingnewrisksasmarketsadjust.Whileindustryconsortiahavetackledlarge-scalechallengesandtransformationsbefore,theappetiteforsystem-widechangeremainslimitedwithouta“burningplatform”forchange.

Regulatoryandlegaluncertainty

Withoutaclearplaybookforregulatorycomplianceandgenerallyagreed-uponprinciplesforthelegalstandingofDLT-enabledtransactionsandsecurities,marketparticipantsareunlikelytomakethesubstantialinvestmentsrequiredtofundamentallychangeprocesses.Further,regulationvariesacrossjurisdictions,complicatingglobalsolutions.WhilemanyregulatorshaveexpressedopennesstoDLT-basedinnovation,aperceptionremainsthatthefuturepathisunclear,particularlyasmostnewentrantshavenotyetfacedprudentialregulation.

DigitalAssets,DistributedLedgerTechnologyandtheFutureofCapitalMarkets 12

KEYINSIGHTS

Summary

Securitizedproducts

–End-to-endorigination,securitizationand

servicingplatform

–Tokenizingloansforservicinganddatamanagement

–FacilitatingsecurityservicingonDLT

Debtmarkets

Derivatives

–Platformfordigitalbondissuance

–PlatformforOTCderivativespost-tradelifecycle

–Distributedorderbookforbondtrading

–ReplatformingexistinginfrastructureonDLT

–Platformcoveringfullcorporatebondlifecycle

–Platformmanagingcollateralforclearedderivatives

–Retailbondissuanceanddistribution

–Platformforexchange-tradedderivativestrade

–Stand-aloneblockchainbondissuance

lifecycle

Equitymarkets

–Replatformingexistingpost-tradeinfrastructure

–Supplementingpost-tradeinfrastructure

–Digitalplatformcoveringfullsecuritieslifecycle

–Equitytokensissuedonblockchain

Thisreportexplores

emergingDLTuse

casesacrossthe

capitalmarkets

Securitiesfinancing

–DLTplatformforrepurchaseagreements

–Securitiesswapsacrosscollateralpools

–Replatformingsecuritieslendinginfrastructure

Assetmanagement

–DLT-basedfunddistributionandregisterplatform

–Investor-facingend-to-endplatformfortokenizedfunds

–End-to-endfunddistribution,administrationandservicingnetwork

Enablementusecases

–Wholesalepayments

–Facilitatingcapitalmarketsdigitization

–Custodyservicesfordigitalassets

–Digitalassetissuanceplatforms

DigitalAssets,DistributedLedgerTechnologyandtheFutureofCapitalMarkets 13

Background

–Businessandtechnologydevelopmentsincapitalmarkets

–OverviewofDLTinthecapitalmarketscontext

–Timelineofmajortechnical,regulatoryandbusinessdevelopments

DigitalAssets,DistributedLedgerTechnologyandtheFutureofCapitalMarkets 14

BUSINESSANDTECHNOLOGYDEVELOPMENTSINCAPITALMARKETS

Acrossthecapitalmarketsecosystem,institutionsarefacingacombinationofnewmarketdynamicsandtechnologyadvancements,presentingopportunitiesandchallenges…

Keybusinessdevelopments

Accelerationofdigitaltransformation,especiallyfollowingCOVID-19:once-emergingtechnologiescontinuetogainscale,andclientdemandfordigitalassetsgrows

Bifurcatedclientservicemodel:transitiontoalow-touchdigitalservicemodelforcertainclientsandtransactions

Sustainablefinanceasasourceofgrowth:demandforproductsthatmeetclients’sustainabilityobjectives

Consolidationoftradingvenues:emergenceofasmallsetoftradingvenuesthatwillattractthebulkofliquidityincertainmarkets

Monetizationofdata:insightsfromtrade,positionandclientdatatopowercustomizedofferings

Broadtechnologyimplications

Increasingexperiencewithartificialintelligence,machinelearning,cloudandDLTsolutions

Increasingneedfordigitalself-serviceclientsolutions,aswellasdigitalenablementsolutionstosupportteamsservicinghigh-touchclients

Increasingneedforsolutionsthat

capturesustainabilityimpact

Potentialformoreelectronictradingandgreaterstandardizationinmoreconcentratedmarkets

Increasingneedforeffectivedata

captureandanalyticsolutions(e.g.

machinelearning)

DLTimplications

IncreasingcomfortwithDLT;potentialforincreasedinterestinsolutionsthatbenefitfrommultiplicativeeffectofDLTwithothertechnologies

DLTandsmartcontractscanfacilitatesolutionsofferinggreaterautomation,withpotentialforintegrationwithself-servicesolutions

PotentialdemandforDLT-enabledsolutionsformeasuring,reportingandtransactingwithsustainability-relateddata,potentiallylinkedtofinancialinstruments

Moreconsistentandscalabledigitalprocessesandconvergenceofmarket-widestandardscouldbeatailwindforDLTimplementations,butDLTusecouldactuallystimulatemoretradingvenues

DLTsolutionsmayofferbetterdataqualityanddataaccessibilitythanexistingsystems

LikelyimpactonDLTinterest

Immaterial Significant

DigitalAssets,DistributedLedgerTechnologyandtheFutureofCapitalMarkets 15

BUSINESSANDTECHNOLOGYDEVELOPMENTSINCAPITALMARKETS

…whilemarginpressuresareforcingallplayerstoidentifymeaningfulcostsavingsandsustainablesourcesofrevenuegrowth

Keybusinessdevelopments

Sustainedcostpressuresacrossthevaluechain:continuedneedtorealizemeaningfulefficienciesviaoperatingmodeltransformationsandinfrastructureredesigns

Scalecontinuestobeakeycompetitiveadvantage:subscaleplayerswillexitortransitionto“white-labelled”products

Balancesheetcapacitycontinuestobeaconstraint:financialresourcescontinuetobejudiciouslyallocatedtoclients,businesslinesandproducts

Increasedfocusoncorecompetencies:non-corefunctionsthatarenotasourceofcompetitivedifferentiationwillcontinuetobetransitionedtoindustryutilitiesorexternalserviceproviders

Increasedcompetition:thecompetitivelandscapeisintensifyingamongbothtraditionalplayersandnewentrants,withcontinuedvaluemigrationacrossthesell-side,buy-sideandserviceandinfrastructureproviders

Broadtechnologyimplications

Increasedinvestmentinmodernizingtechnologies,withgrowingdemandforsolutionsthatunlockstep-changecostreductions

Consolidationoftechsolutionsandproviderswherecriticalmasstakeshold

Increasedinterestintec