The financial market infrastructure of the future will look like this
One of the signal achievements of blockchain technology is to highlight the inefficiencies of financial market silos in which the free flow of assets and transactions is obstructed by fragmented data sets that must be reconciled laboriously and repeatedly. A vision of the future, in which data and the technology which processes it are distributed and market participants are decentralised, is slowly becoming a day-to-day reality across cash, equity, debt, collateral, foreign exchange (FX) and fund markets. More forward-looking financial market infrastructures are embracing that future in ways that go beyond mere flows of data and finance. They are abandoning the ambition to own every aspect of the business of a client in favour of introducing their clients to third-party products and services and inviting providers of those third-party products and services to introduce them to entirely new types of client. Paradoxically, this more open model is proving easier to develop on the foundations of networks that remain relatively closed. Dominic Hobson, co-founder of Future of Finance asked Angie Walker, Global Head of Capital Markets Business Development at R3, how her clients are building financial markets infrastructures that are common, inter-operable and networked.