ASIC contends that ASX misrepresented the status of the project in announcements made on 10 February 2022, where the company stated that the CHESS replacement remained ‘on-track for go-live’ in April 2023 and was ‘progressing well.’ According to ASIC, these statements gave the impression that the project was proceeding according to plan and would meet the announced milestones, including the scheduled launch in April 2023. However, ASIC alleges that these representations were misleading and deceptive, as the project was not on track at the time, and ASX had no reasonable basis to make such claims. On 28 March 2022, just six weeks after making those statements, ASX announced a likely delay in the April 2023 go-live date. Subsequently, ASX engaged Accenture to review the project, which identified significant challenges with the solution design. As a result, ASX decided to pause the project, leading to a $250 million write-down in costs.

ASIC Chair Joe Longo commented: “ASX’s statements go to the heart of trust in the integrity of our markets. We believe this was a collective failure by the ASX Board and senior executives at the time. Companies and market participants rely on what the ASX says about its operations to make their own decisions and investments. We expect the ASX to be a place to list and invest with confidence. When the ASX falls short, it has wide ranging consequences across the market.”

Longo emphasised the significance of the CHESS replacement, describing it as a critical technology project with substantial implications for national infrastructure and the Australian economy.

“Its critical importance was all the more reason ASX needed to ensure it told the Australian public the truth about how the project was tracking and whether it would be completed on time,” he said. “We allege that the true state of affairs as at 10 February 2022 was that the project was not ‘progressing well’, contrary to ASX’s announcement. The delay and subsequent pause of the project in November 2022 caused significant cost to ASX and market participants who relied on assurances as to the progress of the project and scheduled go-live date.”

He continued: “The CHESS replacement project must be managed effectively and transparently. Failure to do so can lead to a lack of confidence in Australia as a market to attract investment.”

ASIC has not yet determined the penalty it will seek for ASX’s alleged breaches. This legal action follows ASX’s recent payment of a $1,050,000 penalty on 7 March 2024, following an ASIC investigation into its compliance with market integrity rules.

Andrew Carrier, Member of the Executive Committee at Quant, specialists in distributed ledger technology and interoperability for financial institutions, comments:

“ASX’s blockchain project has been described as a ‘Frankenstein’, but the promise this technology shows for use in the capital markets makes it a beast worth taming. ASX’s project management issues were compounded by the fact that they were building their own blockchain from scratch, when public and permissioned blockchains, tested and validated in real-world scenarios, already offer scalable and secure solutions that can be tailored for financial services.”

He continues: “The smart move is to use reputable, low-code tokenisation platforms that deliver enterprise-grade tokens and secure smart contracts without hefty price tags. We always say to start small, test, iterate, and then scale – just like successful CBDC pilots. Firms starting out with blockchain can also just complement their existing infrastructure with digital asset capabilities. By adding an overlay, firms can trade digital and traditional assets side by side without disrupting current capital market flows. Once adoption hits critical mass, it is then possible to transition to the new technology and phase out legacy systems. No big bang needed, no day-to-day disruptions. Blockchain’s potential is immense, let’s get it right.”

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Under its new licence, One Trading will become the sole crypto derivatives trading venue for perpetual futures in the EU and the first cash-settled perpetuals platform in Europe, including the UK. The approval also positions One Trading as the first regulated crypto derivatives exchange in Europe accessible to retail clients.

One Trading is pioneering the onshoring of crypto derivatives as “traded on a trading venue” instruments, enhancing regulatory frameworks and security for European customers. These new products offer a modern alternative to traditional exchange-trade futures products, with – according to the company – simpler, more precise, and more capital-efficient structures than traditionally cleared derivatives such as dated futures.

Distinguishing features of perpetual futures by One Trading are real-time settlement of all derivatives positions, and availability 24/7 across all markets, complemented by One Trading’s proprietary technology, claimed to be the fastest and most scalable spot trading platform globally.

By integrating custody and settlement on Distributed Ledger Technology (DLT), One Trading becomes the first EU venue to allow the use of crypto assets as collateral for trading regulated financial instruments. Offering a suite of services without the need for external clearing, One Trading’s DLT infrastructure enables collateral mobilisation on a t+0 basis, operating 24/7, and eliminating costly post-trade processes.

Joshua Barraclough, Founder and CEO of One Trading commented, “The long-term vision of the company is to enable all customer types to go long or short on any asset, use any asset as collateral, settle everything instantly, and perpetually roll contracts. Our team has been dedicated to developing a platform that not only meets but exceeds the highest regulatory standards. With this licence, we are well positioned to introduce new regulated products and offer institutional-grade solutions to all customer types starting with BTC and ETH products where no onshore EU regulated venue currently exists. This is just the beginning of our journey to redefine the landscape of digital asset and traditional security trading.”

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Earlier this year, OSTTRA partnered with Baton Systems to launch a new FX PvP (Payment vs Payment) settlement service, aimed at mitigating bilateral settlement risk in FX markets. This initiative is part of OSTTRA’s broader strategy to enhance the market structure of OTC markets and reduce counterparty exposures.

TradingTech Insight sat down recently with Joanna Davies, Head of Trade Processing, and Steven French, Head of FX and Securities Product Strategy, to discuss how this and other OSTTRA initiatives are addressing some of today’s most pressing post-trade challenges.

TTI: Jo, what are some of the key trends and challenges you are seeing in the post-trade space, particularly with the transition to T+1 settlement?

JD: The realm of post-trade activities is no longer confined to the back office but is increasingly impacting front-office operations. This shift is evident in the transition to T+1 settlement, which has underscored the critical importance of efficient post-trade processes. Traditionally, areas such as liquidity management, credit risk, and liquidity provision were handled separately from post-trade operations. However, with the advent of automation in these domains, there is a growing convergence. The T+1 settlement initiative has illustrated the necessity for robust infrastructure and comprehensive risk management strategies. While there are differing views on the industry’s preparedness—whether it was a result of meticulous planning or the inherent flexibility of existing systems—the transition has undeniably focused attention on post-trade processes. Significant efforts have been dedicated to preparation, especially in managing settlement risk and liquidity provision. The integration of these functions into the front office highlights the evolving landscape where post-trade efficiency is paramount to overall financial operations.

TTI: Steve, where are the main areas of settlement risk, and how is OSTTRA helping the industry mitigate these risks?

SF: The significant daily risk of FX settlement outside of Continuous Linked Settlement (CLS) is a pressing concern, given the estimated daily exposure of $2.3 trillion settled outside the utility today. This substantial risk is particularly pronounced for emerging market currencies, which struggle due to the absence of a suitable settlement platform. The infrastructure and legal complexities required to establish such a platform are substantial, creating barriers to adoption.

Addressing this issue, OSTTRA, in collaboration with Baton Systems, has developed an innovative PvP (Payment vs Payment) settlement orchestration platform specifically targeting non-CLS currencies. The initial focus is on the Chinese yuan (CNH), with major banks such as HSBC and Wells Fargo already onboard. This platform aims to mitigate settlement risk by providing a structured and reliable solution for managing PvP settlement of these currencies, paving the way for broader participation and increased security in the settlement process. By targeting these high-risk areas first, OSTTRA and Baton Systems are setting the foundation for a more secure and efficient global settlement infrastructure.

TTI: What kind of appetite is there for such a new settlement infrastructure?

SF: There is a strong industry interest in reducing settlement risk, demonstrated by the active participation of multiple banks in discussions aimed at expanding the new settlement platform. Recently, we convened a working group and are open to adding any other participants eager to collaborate on this initiative to join. The discussions to date have moved beyond the feasibility of the platform and are now focused on practical steps for implementation, such as how to onboard and make the system work effectively.

Achieving critical mass is seen as essential, with the participation of a few additional major banks likely to drive broader adoption across the industry. Currently, HSBC and Wells Fargo are already on the platform, and the inclusion of just two or three more major players could significantly move the needle.

The primary hurdles to adoption are not technical but involve changes in treasury operations, particularly concerning the management and agreement of nostro accounts. Overcoming these operational challenges is key to leveraging the already established network and technological infrastructure, thereby facilitating a smoother and quicker transition to the new system.

TTI: Can you both provide more details on your technology initiatives, particularly the integration between OSTTRA and Baton Systems?

SF: Essentially we’re leveraging OSTTRA’s robust matching engine in conjunction with Baton’s advanced shared ledger technology, to ensure secure and efficient settlement processes, which are critical. The matching engine, which has been thoroughly tested and widely adopted, is now connected to Baton’s next-generation shared ledger, which provides atomic settlement -. This means that PvP transactions will only be executed once both parties have agreed, thus ensuring transaction finality.

JD: We are also developing advanced tools designed to identify and resolve trade breaks proactively. Recognising the inefficiencies of current processes, where the resolution of trade discrepancies often involves manual communication and guesswork, we’re leveraging artificial intelligence (AI) and historical data analysis to predict and manage trade failures. By integrating enhanced monitoring and exception management, this adds crucial context to trade data, allowing for a more accurate diagnosis of where and why a trade might fail. This innovative approach provides an understanding of the specific conditions leading to trade disruptions. By analysing past trading volumes and incorporating real-time feeds, OSTTRA can forecast spikes in trading activity and pre-emptively address potential issues. This proactive and context-rich method marks a significant advancement in post-trade processes, reducing settlement risk and operational inefficiencies, and ultimately providing a more reliable and transparent trading environment.

We are also enhancing the synergy between pre-trade and post-trade services by expanding the asset classes supported by our sophisticated pre-trade limit checking service initially designed for interest rate swaps and credit default swaps. This service ensures low-latency risk checks are performed before orders are sent to the market, helping to address a client’s regulatory requirements and minimising potential risks. Developed in response to the CFTC Dodd-Frank requirements and EU regulations for MTFs, this unique solution has been operational for over a decade, continuously evolving to support additional asset classes such as FX. By integrating pre-trade and post-trade services, OSTTRA aims to provide a comprehensive end-to-end solution that significantly enhances transparency and operational efficiency. This integration allows for seamless monitoring and management of trades throughout their lifecycle, from order initiation to settlement, ensuring a high level of accuracy and reducing the risk of trade failures.

TTI: Looking ahead, what role might distributed ledger technology (DLT) and decentralised finance (DeFi) play in the future of post-trade?

JD:  We continue to maintain a watchful eye on the developments in DLT, blockchain and DeFi, recognising their potential while remaining cautious about adopting these technologies until they are fully production-ready. In contrast to many industry peers who have proposed various blockchain use cases that are not yet ready for real-world application, OSTTRA has identified a practical and viable use case for blockchain in change of ownership scenarios. This particular use case is advantageous as it circumvents the common issues of latency and throughput, providing a more efficient solution.

By utilising an extensible architecture, OSTTRA is prepared to leverage blockchain technology in a manner that is both practical and forward-thinking. This approach not only addresses current operational challenges but also positions the company to explore and integrate other asset classes in the future. As blockchain and DeFi technologies continue to evolve, we remain committed to evaluating and implementing these innovations in a measured and strategic manner, ensuring they meet the rigorous demands of production environments.

TTI: Thank you both.

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TT Trade Surveillance, powered by TT’s proprietary SCORE machine learning algorithm, expands the company’s surveillance capabilities across multiple asset classes, including equities, options, FX, and fixed income. The company plans to start upgrading all users of its existing trade surveillance platforms, TT Score and Compliance Plus, to the new TT Trade Surveillance system, which includes 47 new configurable models to detect manipulative trading activities, in the second half or 2024.

“TT Score, a futures and options surveillance platform based on machine learning, is a product that TT has offered for several years. Last summer we acquired Abel Noser, which also has an equities surveillance platform called Compliance Plus,” says Ted Morgan, Trading Technologies EVP Managing Director, Compliance, in conversation with TradingTech Insight. “Over the past year, we have been combining the best features of these two platforms, addressing any gaps, and developing TT Trade Surveillance, our new platform due to be launched on 1st July, which will offer comprehensive multi-asset class trade surveillance, covering not only equities, futures, and options, but also other instruments such as foreign exchange and fixed income. It will also feature enhanced case management capabilities, extended graphing and charting, and will include all necessary market data for comprehensive surveillance. Assembling that across multiple asset classes has not been a small project, so this is a big step forward for us.”

Included in the new TT Trade Surveillance platform will be front-end functionality that allow users to adjust settings and thresholds that pertain to particular models so that they can be run on any subset of data they want to filter, such as defining parameters differently for specific countries or distinguishing between retail and institutional flow.

TT Futures TCA, the company’s new comprehensive transaction cost analysis tool that also builds on TT’s August 2023 acquisition of Abel Noser, leverages an extensive repository of anonymised, microsecond-level futures market and trade data to provide extensive metrics and measures for detailed post-trade analysis, aiming to fill the gap in TCA tools tailored for futures trading.

“Abel Noser were pioneers in transaction cost analysis (TCA), primarily in the equities markets, but increasingly expanding into FX, futures, and fixed income,” says Peter Weiler, TT’s EVP Managing Director, Data & Analytics, and Abel Noser CEO. “The merger with TT brings significantly enhanced market data. We now have large, anonymised sample sets of trading data that we can compare against that market data. We have also expanded our metrics beyond traditional equities benchmarks like VWAP and implementation shortfall, to include those critical in the futures market, such as quote data, depth of book, sweep orders, and so on. With this integration, we’ve also improved our front end’s functionality with additional analytics, enhanced charting capabilities, and executive summary reports.”

The new TT Futures TCA capability allows users to select from a variety of customisable reports to analyse and enhance their trading strategies while assessing the effectiveness of their trading counterparties. This capability is available now and will be integrated into the TT platform as a front-end widget in early 2025. The customised analytics will be accessible to clients based on their desired metrics, breadth, and level of granularity.

“The front-end widget will display all trade data and measured data in one place, providing comprehensive transaction cost analysis across asset classes, even if you don’t trade exclusively through Trading Technologies,” says Weiler. “This integration will bring together cash equities with options, options on futures, buy/writes, strangles, straddles, and more.”

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The awards were presented during a celebratory drinks reception after the close of A-Team Group’s TradingTech Briefing in New York City on 6 June 2024.

This year’s awards included more than 40 categories ranging from Best Matching Engine for Cryptocurrency Trading Venues to Best High Performance Network Services, Best Equities Trading Solution, Best Machine-Readable News Supplier, Best AI Solution for Trading, Best Trade Reporting Solution, Best Overall Market Data Provider, Best Specialist Market Data Consultancy and more.

An editor’s recognition award for USA Trading Technology Industry Professional of the Year was presented to Steve Schiff, Vice President, Index Technology at Nasdaq.

Andrew Delaney, President and Chief Content Officer at A-Team Group, said: “Congratulations to the award winners and thank you to all the vendors that entered A-Team Group’s TradingTech Insight Awards USA 2024, to our TradingTech Insight community that voted for its preferred solutions, and to our independent, expert advisory board that worked in collaboration with our editorial team to select this year’s winners.”

A complete list of winners and their solutions can be found in the TradingTech Insight Awards – USA 2024 report.

You can find out more about A-Team Group awards, which also cover RegTech, Data Management and ESG here.

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The routes in Seoul terminate at the KINX Gasan data centre, where Avelacom has established its point-of-presence (PoP). This location was selected to provide direct access to the AWS Northeast region and South Korea’s largest cloud-based cryptocurrency exchanges.

“These are pure crypto trading routes,” Aleksey Larichev, CEO of Avelacom, tells TradingTech Insight. “Korean crypto exchanges are becoming more popular despite limitations on the KYC side. Traders are seeking good liquidity and expanding their business to new venues. Low latency routes to Korea have been among popular inquiries, and now we can support the overseas trading community with the connectivity services they require.”

The new routes complement Avelacom’s recently launched proprietary low latency Seoul-Tokyo route. The network now fully interconnects Seoul, Tokyo, Hong Kong, and Singapore, facilitating direct connectivity between any two points. Additionally, these routes connect to over 100 global Avelacom PoPs, offering direct access to both traditional exchanges globally and cloud-based crypto and digital exchanges. This extensive connectivity supports time-sensitive trading strategies, such as arbitrage and market-making algorithms, and enables the capture of real-time market data feeds.

“Essentially, in the realm of prop trading firms, we need to outpace other providers, including public clouds, in terms of speed. We identified an opportunity to build faster fiber routes. While cryptocurrency was the driving force, the capacity on these routes will be utilised for traditional trading as well,” says Larichev.

He continues: “Our network’s extensive coverage enables us to provide our clients with a one-stop-shop in terms of geographical reach. For instance, if a customer uses our services in Australia, Israel, or South Africa and they are satisfied with the performance, support, and services we deliver, as they expand into new markets, whether cryptocurrency or traditional, they tend to approach us, inquiring if we can provide services at their new locations. In fact, more than 80% of our clients tend to further utilize our offerings across diverse geographical regions and product/instrument spectrums.”

Much of the demand for Avelacom’s services – for both crypto and traditional markets – comes from proprietary trading firms, says Larichev. “Prop shops tend to gravitate towards areas of high volatility, and that goes in waves across both traditional and cryptocurrency markets. For instance, a couple of years ago, there was a significant shift from traditional markets towards cryptocurrencies. However, during the past year, the cryptocurrency market has experienced a slowdown. Consequently, we are now witnessing a number of clients who previously traded exclusively in cryptocurrencies transitioning towards traditional exchanges. The trend oscillates back and forth.”

Avelacom’s new routes are now operational with guaranteed microsecond-level latencies and up to 99.9% network uptime.

The post Avelacom Expands Network with New Low Latency Routes To/From Seoul, Targeting Crypto Traders appeared first on A-Team.

The paper, “Building the Digital Asset Ecosystem,” highlights a significant $16 trillion business opportunity by 2030 through the tokenisation of global illiquid assets. It aims to overcome the current fragmented innovation landscape by defining six principles essential for the widespread adoption of tokenisation and digital asset securities, excluding cryptocurrencies. Additionally, it outlines comprehensive risk management controls crucial for the future of digital markets.

The partnership leverages the extensive experience and client networks of DTCC, Clearstream, and Euroclear, building on their previous efforts to foster global market participant collaboration. Last year’s whitepaper, “Advancing the Digital Asset Era, Together,” laid the groundwork for this latest initiative.

Renee Berman, Managing Director at DTCC Digital Assets, tells TradingTech Insight how the three organisations are committed to working together to lead the industry conversation and drive collaboration to advance the adoption of digital assets.

“Over the past 9 months, we have worked closely to produce two white papers to define our shared vision and galvanise the industry around The Digital Asset Security Control Principles (DASCP) framework, which we believe can serve as a baseline to foster discussions on standardisation and to encourage interoperability across platforms and systems,” she says. “In addition, all three institutions have pledged to leverage the DASCP in our own activities. We recognise that while each of our institutions has different priorities and that the market structure is unique across geographies, having three of the largest FMIs collaborate to help drive adoption of digital asset securities sends a powerful message to the market.”

The six principles proposed to guide the development of a unified digital asset marketplace include:

• Legal Certainty – Ensuring compliance with legal frameworks.
• Regulatory Compliance – Aligning operations with regulatory requirements.
• Resilience and Security – Developing robust infrastructure to protect against disruptions and secure sensitive data.
• Safeguarding Customer Assets – Implementing smart contract governance to manage assets securely.
• Connectivity and Interoperability – Enabling flexible settlements and transactions across diverse networks.
• Operational Scalability – Achieving efficiency and cost-effectiveness through standardisation.

“Similar to the Principles for Financial Market Infrastructures (PFMIs) established by BIS and IOSCO, these six principles serve as a guide to ensure that the emerging digital asset securities market is as safe and sound as the traditional securities market,” says Berman. “Recognising that there are multiple regulatory perspectives, we formulated the control principles to be adaptable and to serve as a broad framework for the industry. They are meant to function as guidelines that can be modified on an as-needed basis, given the regulatory environment governing each participant’s activities.”

Berman explains that Resilience and Security is a key principle to ensure the market for digital asset securities evolves to be as safe and secure as the traditional financial ecosystem. “We spent a significant amount of time with our risk teams to make this section of the paper comprehensive and to address all known cyber risks,” she says. “Through our analysis and conversations, we identified 16 unique risks associated with Resilience and Security, our largest set of risks. To offset these risks, we identified 14 specific controls focused on Resilience and Data Protection that can be deployed to mitigate these risks. While we believe our framework is very thorough, there may be novel risks that are identified as market practitioners deploy it. We anticipate the framework will evolve as new risks and controls are identified and put in place.”

In addition to the guiding principles, the new paper recommends risk mitigation controls to address issues such as asset mismanagement and governance of smart contracts. These include specifying access controls for smart contracts and maintaining detailed records of digital asset events and transactions.

“We are excited about the potential growth in the market, projected cost savings from enhancing operational efficiency and improved collateral management,” says Berman. “At DTCC, we have pledged to leverage the framework and apply it to our own digital asset activities. By doing this, we’ll effectively demonstrate to clients and regulators how DTCC is addressing the unique risks associated with digital asset securities, which will be critical in driving adoption. The rate of adoption of digital asset securities in the industry will be a key measure of success, but we recognise that a detailed risk and control framework is only one component to achieving this. For the digital asset ecosystem to mature, we still need a cash on-chain solution, interoperability between blockchain networks and with legacy infrastructure, technology and data standards and viable business cases to justify the investment.”

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This year’s platinum award winner is Regnology for its Most Innovative Regulatory Reporting Solution. Gold award winners include Interop.io, Quod Financial, S&P Global Market Intelligence, and SmartStream Technologies, with plenty more entrants picking up silver awards.

The Innovation Awards 2024 included over 40 categories across A-Team Group’s Data Management Insight, TradingTech Insight, RegTech Insight and ESG Insight news channels. They ranged from Most Innovative Smart Trader Desktops and Workflows to Most Innovative Data Standards Initiative, Most Innovative ESG Data Solution, Most Innovative AI in Regulatory Compliance Initiative, Most Innovative Data-Driven Transformation Project, Most Innovative Financial Technology Executive, Most Innovative Professional Development Initiative, and more.

A complete list of winners and their solutions can be found in the Innovation Awards 2024 report.

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By Fernando Luis Vázquez Cao, CEO, SBI Digital Asset Holdings.

The emergence of tokenised securities heralds a transformative shift much like the advent of the internet. Just as the world wide web transformed how we exchange information globally, tokenisation holds the potential to revolutionise how we transact and invest in financial markets, unlocking new opportunities and driving unprecedented levels of innovation and growth.

With the potential for increased liquidity, greater accessibility, and enhanced efficiencies and transparency, institutional investors are increasingly recognising the value of diversifying into digital assets. A study conducted by SBI Digital Asset Holdings with institutions across Asia revealed that among those planning to invest in tokenised securities, a staggering 76% cited factors such as lower issuance costs and shorter settlement periods as primary motivators.

The allure of accessing new or global capital was also a compelling factor for 30% of respondents. When asked about the main benefits of tokenising real-world assets, close to half selected reduced intermediaries as the top factor, followed by faster settlement, cost efficiency, and enhanced transparency.

This tells us that institutional investment, as opposed to retail, is poised to drive the digital assets market, as the sheer volume of potential institutional flow will significantly impact the market. However, many challenges stand in the way.

Legacy technologies hinder implementation efforts, presenting challenges for asset managers looking to embrace digital assets. Internal resistance, including concerns from risk and compliance teams, poses significant challenges, while the still-evolving regulatory landscape leaves asset managers uncertain on how to ensure compliance.

Another key hurdle is the genesis of the crypto world, which initially catered to retail investors and operated outside traditional regulatory frameworks. This divergence from institutional norms presents obstacles for large asset managers seeking to navigate the digital asset space, with institutional standards often conflicting with the decentralised nature of crypto assets. Whilst crypto remains volatile and unregulated, institutional infrastructure for digital assets stands in stark contrast as it is fundamentally designed to be structured and regulatory-compliant.

The crux of the issue lies in establishing robust institutional-grade infrastructure to realise the full potential of tokenised securities. In our survey, close to a quarter of respondents cited that a top deterrent to institutional adoption was the lack of institutional-grade market infrastructure.

Building such infrastructure is no mean feat. Robust custody solutions are crucial for securely storing digital assets, but structuring deal flows and facilitating asset issuance are equally important. Market infrastructure should also foster liquidity through services like market-making and liquidity pools. Trading platforms must comply with regulations and offer advanced functionalities tailored to institutional needs. Effective market surveillance tools are critical for detecting and preventing manipulation and fraud, while scalability and interoperability are essential to accommodate growing demands and facilitate efficient asset transfer. Last, not least, cybersecurity measures are paramount to safeguard digital assets and sensitive information against cyber threats and breaches.

In the years we spent building institutional-grade infrastructure, it has become apparent that this task cannot be undertaken in silo, and that an end-to-end value chain, built in collaboration with financial institutions, technology providers and regulatory bodies is highly necessary. This was confirmed in our survey where 60% of institutional participants stated that a trusted ecosystem is currently absent.

Built by the right players, and with the right alliances, a trusted ecosystem creates a trading landscape that will capture the full potential of tokenised securities and revolutionise the capital markets. As these entities work together to establish standards and best practices, the market infrastructure will evolve, addressing concerns about reliability and security.

It’s also important to recognise that trust is not solely the responsibility of one party but is built collaboratively across the entire ecosystem. Regulatory frameworks play a crucial role in ensuring the legitimacy of tokenised assets, and by working closely with regulators, financial institutions can contribute to the establishment of a robust regulatory environment that instils confidence in market participants.

As financial institutions embrace the transformative potential of blockchain technology, market participants have begun to work collectively to build a secure and regulated ecosystem. Tokenisation will then become a cornerstone of the modern financial landscape, offering unparalleled efficiency, transparency, and access to global capital. The time is ripe for institutions to seize the opportunities presented by tokenisation and propel the capital markets industry into a more secure, efficient, and inclusive future.

The post Build and They will Come: Accelerating Market Efficiencies for Tokenised Securities with Institutional-Grade Infrastructure appeared first on A-Team.

Fusion Digital Assets is a trading venue designed specifically for institutional participants and registered with the UK’s FCA, highlighting its focus on regulatory compliance and the safety of digital asset transactions. The partnership with Talos underscores TP ICAP’s aim of bridging the gap between traditional financial markets and the burgeoning crypto market.

Hina Sattar, Head of Digital Asset Sales at TP ICAP, commented: “We are excited to integrate with Talos and provide their significant institutional client base access to the diversified liquidity from Fusion Digital Assets. This partnership is a natural fit, combining a market structure for which regulators have voiced a strong preference with a trading platform whose functionality institutions know and expect.”

The Talos trading platform has been engineered along similar lines to those within traditional finance, offering institutions a familiar trading experience adapted for digital assets. The integration with TP ICAP’s Fusion Digital Assets enables Talos clients to seamlessly access Fusion’s unique liquidity pool – which includes a mix of traditional and crypto-native clients – through either the Talos API or via GUI.

“Fusion is unique in the digital asset landscape, and we are pleased to connect Talos clients to their liquidity,” commented Daniel Packham, VP – Head of Operations EMEA at Talos. “TP ICAP and Talos share a mission of delivering the digital asset ecosystem to institutions at the standards they require – in terms of performance, reliability, security and compliance.”

Talos operates an extensive network of 60+ digital asset service providers, including exchanges, OTC desks, prime brokers, and custodians, and positions itself as a pivotal platform for institutions looking to navigate the complexities of the digital asset markets. The addition of Fusion Digital Assets to the network further enhances the capabilities available to Talos clients, promising a more integrated and efficient trading experience, according to the company.

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