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Fujitsu To Develop ETF Trading Platform Based On TSE’s CONNEQTOR And Provide It To Australian Securities Exchange

The Australian Securities Exchange (ASX), the Tokyo Stock Exchange, Inc. (TSE), and Fujitsu Limited on June 2, 2025 signed a Memorandum of Understanding (MOU) to develop a SaaS-based Request for Quote (RFQ) platform. Fujitsu will develop the platform based on "CONNEQTOR," an RFQ platform for the ETF market developed by TSE and Fujitsu, and provide it to ASX.The initiative aims to modernize the process for ETF pricing in Australia by implementing a SaaS RFQ platform, built and managed by Fujitsu. The foundation of this new platform is the CONNEQTOR system provided by TSE, one of Asia's most successful RFQ platforms. Since its launch in February 2021, CONNEQTOR has enabled over 290 users to significantly reduce costs and improve the efficiency of their ETF trading operations. Monthly trading value reached a record high of JPY 306.4 billion in April 2025.Fujitsu will serve as the service provider for the Fujitsu RFQ platform, responsible for service development, provision, and utilization support. TSE, as the licensor and operator of the CONNEQTOR system, will provide support for the platform's implementation. Comments Andrew Walton, General Manager, Trading, ASX comments “ASX is excited to partner with Fujitsu and TSE to explore the opportunities the Fujitsu RFQ platform can deliver for the Australian market. With the ability to increase liquidity and price discovery, ASX sees the potential to support the development of this market segment and its participants. We will be engaging extensively with the Australian industry to gather feedback to assess the feasibility of launching this platform in the first half of 2026.” Satoshi Takura, Senior Executive Officer, Tokyo Stock Exchange (Senior Executive Officer & CIO, Japan Exchange Group) comments "It is great to join forces on the feasibility of a service based on TSE's CONNEQTOR. By providing international and diverse market functions, we hope to contribute to the development of the global ETF market from a technological perspective." Masaru Yagi, Corporate Executive Officer, SEVP, Fujitsu Limited comments "Fujitsu is excited to explore this opportunity to provide the Fujitsu RFQ platform for the Australian Securities Exchange. Leveraging our deep experience in building and maintaining financial infrastructure with cutting-edge technology, we're confident that our strong partnership with the Tokyo Stock Exchange will unlock even greater value for the ASX and its global customers."   Fujitsu, in cooperation with TSE, aims to expand the Fujitsu RFQ platform to other exchanges around the world and explore further potential collaborations. Related Page Overview of RFQ Platform "CONNEQTOR"

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HKEX Introduces Order Routing Service On Integrated Fund Platform

Hong Kong Exchanges and Clearing Limited (HKEX) is pleased to announce today (Thursday) the launch of the Order Routing Service on its Integrated Fund Platform (IFP), marking an important step forward in connecting key participants in the fund distribution lifecycle and enhancing the efficiency of Hong Kong's fund management industry. Building on the success of its Fund Repository, which has been welcomed by the industry for its functionality and ease of use, the introduction of the Order Routing Service will help transform the fund order placement process, which includes subscriptions and redemptions, into a seamless and integrated system. By enhancing communications between fund distributors and transfer agents, this latest addition addresses longstanding operational challenges while promoting greater efficiency and collaboration across Hong Kong's fund distribution network. The communications network of the Order Routing Service is supported by the Financial Data Exchange Platform Network of the Shenzhen Securities Communication Co. Ltd, which is a unit of Shenzhen Stock Exchange. HKEX Chief Executive Officer, Bonnie Y Chan, said: “We are delighted to announce the latest enhancement to the IFP with the launch of the Order Routing Service, designed to facilitate seamless interaction between distributors and transfer agents. This centralised platform will connect participants of all sizes across the fund value chain, fostering greater collaboration and elevating operational efficiencies for the fund distribution industry.” Ms Chan added: “This offering underscores our commitment to further advance the development of Hong Kong's fund distribution ecosystem and to enhance its position as a leading hub for wealth and asset management in the region.” Alongside the new service launch, the IFP also welcomes an initial cohort of 33 distributors, transfer agents and fund houses to join the platform. For the full list of such industry participants, please visit the HKEX Website. The next phase of development for the IFP includes the provision of nominee services, as well as the facilitation of payments and settlement, subject to regulatory approval. HKEX will continue to collaborate with regulators and industry stakeholders to enhance market efficiency and promote broader industry participation. Further details on the platform's progress will be shared in due course.

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Hong Kong Securities And Futures Commission Welcomes Launch Of Order Routing Service On Integrated Fund Platform

The Securities and Futures Commission (SFC) is pleased to welcome Hong Kong Exchanges and Clearing Limited’s (HKEX) launch of its Order Routing Service on the Integrated Fund Platform (IFP) (Notes 1 and 2). The launch of the Order Routing Service marks a key milestone in the development of the IFP as it will facilitate communication between market participants in the retail funds industry and can help promote greater collaboration across Hong Kong’s fund distribution network. “By enhancing the connectivity between various market participants, the Order Routing Service can help significantly improve the efficiencies of the fund distribution ecosystem. This is expected to contribute to cost optimisation in the fund sales chain, which will also strengthen the overall competitiveness of the Hong Kong retail funds market,” said Ms Christina Choi, the SFC’s Executive Director of Investment Products. The SFC appreciates the support from industry stakeholders for the initiative and will continue to work closely with HKEX and other related parties to bring about the full implementation of the IFP. Notes: The IFP, as a new financial infrastructure, is part of the government’s initiatives to foster co-development of fintech and the real economy in Hong Kong. Please refer to the SFC’s press release dated 2 November 2023. The IFP, which will operate on a business-to-business basis, is launched by a phased approach. The Fund Repository was launched in December last year, please refer to the SFC’s press release dated 13 December 2024. The other services are expected to be launched subsequently. For details on the IFP and the Order Routing Service, please refer to HKEX’s website.

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ASIC Releases Estimated Industry Funding Levies For 2024-25

ASIC today issued its 2024-25 Cost Recovery Implementation Statement (CRIS), which outlines how ASIC will recover regulatory costs from industry under the industry funding model. For the 2024–25 financial year, ASIC’s total estimated recoverable costs are $349.3 million — a 6% increase from the $328.1 million recovered in 2023–24. This increase reflects additional funding to support key Government priorities, including: Implementation of the scams prevention framework Mandatory climate-related financial disclosures Beneficial ownership transparency reforms Enhancements to ASIC’s data capability and cyber security The CRIS provides estimated regulatory costs and levies for each of ASIC’s 52 regulated subsectors to help entities plan and budget for levies and fees to be charged. A summary is included which explains the material variance between ASIC’s estimated recoverable costs for 2024-25 and actual recoverable costs for 2023-24 across 16 subsectors. The variance is considered material if the estimated recoverable costs for the subsector this financial year are different from the actual recoverable costs last financial year by more than 10%, and the variance is also greater than $1 million. The statement’s figures are a guide only. Final levies will be published in December 2025 and invoiced between January and March 2026. Background Entities regulated by ASIC receive an invoice each year for ASIC’s regulatory services under laws introduced by the Australian Government following recommendations from the Financial System Inquiry. The levies entities pay reflect ASIC’s costs of regulating the subsectors they operate in. Each year ASIC details how its costs will be recovered from each regulated subsector through industry funding levies and via fees for service. ASIC’s industry funding model ensures that costs of regulatory activities are borne by the entities ASIC regulates, rather than Australian taxpayers. More information See the 2024-25 Cost Recovery Implementation Statement Find out how the government’s industry funding model for ASIC works To address recommendations outlined in the 2023 Review of ASIC’s Industry Funding Model, ASIC and Treasury have a five-yearly consultation process with industry to examine policy settings within the industry funding model.  

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EBA Consults On Draft Guidelines On The Methodology To Estimate And Apply Credit Conversion Factors Under The Capital Requirements Regulation

The European Banking Authority (EBA) today launched a public consultation on its draft Guidelines on the methodology institutions shall apply for their own estimation and application of credit conversion factors (CCF) under the Capital Requirements Regulation (CRR). The consultation runs until 15 October 2025. These Guidelines are a part of the IRB repair programme, are built on the now-stabilised CRR framework, and aim to provide institutions with clear and consistent expectations for Credit Conversion Factor (CCF) estimation. By leveraging on existing guidance, particularly through the Guidelines on the Probability of Default (PD) and Loss Given Default (LGD) estimation, the EBA aims to ensure alignment and coherence across key risk parameters in the IRB approach, thus promoting a harmonised and reliable modelling landscape. Much of the CCF guidance formalises existing expectations already in place for PD and LGD, ensuring consistency for institutions while enhancing clarity for CCF models. Recognising the relatively lower materiality and narrower scope of CCF compared to PD and LGD, the EBA aims to introduce with these new Guidelines simplified approaches where appropriate, to support the efficient implementation of risk sensitive methodologies without compromising prudence. The Consultation Paper includes a list of detailed questions on the proposed approaches to ensure that the EBA receives relevant feedback in order to provide meaningful guidelines to maintain robust internal models while reducing unnecessary complexity. Consultation process Responses to this consultation can be sent to the EBA by clicking on the "send your comments" button on the consultation page. Please note that the deadline for the submission of comments is 15 October 2025. A public hearing will take place via conference call on 3 September 2025 from 15:00 to 16:00 CET. The deadline for registration is the 29 August 2025, 16:00 CET. All contributions received will be published after the consultation closes, unless requested otherwise. Legal basis and next steps Under Article 182(5) of Regulation (EU) No 575/2013 amended by Regulation (EU) No 2024/1623, the EBA is mandated to provide guidance to specify the methodology institutions shall apply for the own estimation and application of CCFs, i.e. the IRB-CCF GL. Documents Consultation paper Guidelines CCF (1.17 MB - PDF) Related content Consultation15 OCTOBER 2025 Consultation on Draft Guidelines on the methodology to estimate and apply credit conversion factors under the Capital Requirements Regulation Regulatory activityUnder consultation Draft Guidelines on the methodology to estimate and apply credit conversion factors under the Capital Requirements Regulation

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The EBA Consults On Draft Amended Guidelines On The Application Of The Definition Of Default Under The Capital Requirements Regulation

The European Banking Authority (EBA) today launched a public consultation on its draft amended  Guidelines on the application of the definition of default under the Capital Requirements Regulation (CRR). As part of its commitment to financial stability, transparency, and consistency, the EBA is proposing to maintain the existing 1% threshold for net present value (NPV) loss in debt restructuring. This approach reflects a careful balance between flexibility for institutions and the need to uphold robust risk management standards. The consultation runs until 15 October 2025. The proposal to retain the 1% threshold is based on three key considerations: The current framework is already flexible and risk-sensitive, allows effective restructuring without misclassifying defaults, and is aligned with established accounting principles. Maintaining consistency with existing prudential standards helps safeguard the progress made in reducing non-performing loans and prevents regulatory arbitrage. A stable threshold supports reliable credit risk modelling, ensuring accurate capital and provisioning assessments across portfolios under both IRB and IFRS 9. To allow for more proactive debt restructuring and reduce the potential burden on debtors, the EBA is considering a shortened probation period from 1 year to e.g. 3 months for certain forborne exposures. The draft amended Guidelines, however, do not incorporate this change, also because it would widen the gap between the definition of non-performing exposures and the definition of default. Besides the changes brought forward by the revised CRR, the EBA is also proposing to increase the exceptional treatment of days past due at invoice level from 30 to 90 for non-recourse factoring arrangements to better reflect the economic reality of purchased receivables. Consultation process Responses to this consultation can be sent to the EBA by clicking on the "send your comments" button on the consultation page. Please note that the deadline for the submission of comments is 15 October 2025. A public hearing will take place via conference call on 3 September 2025 from 11:00 to 12:00 CET. The deadline for registration is the 29 August 2025, 16:00 CET. All contributions received will be published after the consultation closes, unless requested otherwise. Legal basis and background The definition of default is laid down in Article 178 of Regulation (EU) No 575/2013 (Capital Requirements Regulation – CRR) and further detailed in Commission Delegated Regulation (EU) 2018/171 and the EBA Guidelines on the definition of default. Under Article 178(7) of CRR, as amended by Regulation (EU) 2024/1623, the European Banking Authority is mandated to review the Definition of Default guidelines which were drafted by the EBA based on the mandate in Article 178(7) of Regulation (EU) No 575/2013. While the mandate explicitly mentions that the EBA shall duly consider the need for granting a sufficient flexibility to institutions when specifying what constitutes a diminished financial obligation, the mandate also allows for the review of other parts of the framework. Documents Consultation paper amending GL on definition of default (611.65 KB - PDF) Related content Consultation15 OCTOBER 2025 Consultation paper amending Guidelines on definition of default Regulatory activityUnder consultation Consultation paper amending Guidelines on definition of default Link Guidelines on the application of the definition of default

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MIAX Exchange Group - Reminder: Holiday Schedule - July 4, 2025

As previously announced in the June 26, 2025 Alert, the MIAX Options Exchange, MIAX Pearl Options Exchange, MIAX Emerald Options Exchange, MIAX Sapphire Options Exchange and MIAX Pearl Equities Exchange will have abbreviated trading sessions on Thursday, July 3, 2025.  All Option Classes will close 3 hours early, 1:00 p.m. and 1:15 p.m. ET. MIAX Pearl Equities will end the Regular Trading Session at 1:00 p.m. ET and end the Late Trading Session at 5:00 p.m. ET. On Friday, July 4, 2025, the MIAX Exchanges will be closed in observance of Independence Day.

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Canadian Investment Regulatory Organization: Do-It-Yourself Investing - With A Little Help From Your Friends, Followers, And Family - New Study Finds Social Motivations For DIY Investors And Surprising Role Of Social Media

A study by the Canadian Investment Regulatory Organization (CIRO), finds community and social relationships are important to do-it-yourself investors (DIY) – both online and offline – when it comes to getting started with DIY investing and in making investment decisions. It also found that DIY investors are using social media as one tool among many to research and verify their investment decisions. The Social Side of Investing – going DIY, but not going it alone Many interviewees described the important role of friends, family or colleagues in getting them started with DIY investing. Many reported having received recommendations to use an app, receiving a demo or being advised to make specific investments from people in their network. The study also looked at the role of social media in DIY investing. The research found that while many DIY investors use social media to find investment opportunities, they also try to be diligent by validating investment information they hear online by cross-checking it offline with friends and family. “While it is concerning that many DIY investors are relying on social media and finfluencers for investment information, it is good news that they know to verify and validate what they hear across multiple channels,” said Alexandra Williams, Senior-Vice President Strategy, Innovation and Stakeholder Protection. “But caution is required when dealing with unregulated advice which is neither tailored to the individual investor nor regulated in terms of the product being promoted. Sound investment decisions require a consideration of both the client and the product.” Beyond Control and Fees-New Motivations for DIY Having personal control remained a primary motivator for DIY investors, control had different meanings for different respondents. The study uncovered three interconnected categories of motivation for DIY investors. Financial motivation led DIY investors to believe they could achieve higher returns than they would with an advisor, pay lower fees, or purchase investment products that may not be available through one advisor alone. These findings are consistent with much of the existing research. But two surprising new areas of motivation emerged in the interviews. Instrumental motivations include non-financial benefits of DIY investing such as building financial literacy, the pursuit of knowledge and continuous learning, convenience and ease of use as well as the opportunity to connect with friends and family over investing. Identity motivations include feeling like someone who takes personal responsibility for their finances, is independent, and can feel fully responsible for their successes and failures. “Being an investor is an identity in and of itself,” said Williams. “Investing gives people a strong sense of confidence and personal satisfaction. DIY Investors feel like they are taking responsibility for their investments and DIY investing is one way for them to feel like they are in the driver’s seat of their own life.” Interviewees report using social media for investing primarily to seek personal finance and investment knowledge (such as money management, budgeting, debt reduction) learn investing strategies and track financial trends, while occasionally coming across ads for investment platforms. They report enjoying using social media in their investing journey—it lets them connect with other investors, share experiences, engage in valuable discussions and lighthearted banter, and stay motivated to continue investing. DIY Investors also used social media for purchase decisions—to learn about new products; monitor news, analysis or activity on investments they own; and to do additional research or validate what they had heard about a product from another source. The research report gathers qualitative findings from a series of in-depth one-on-one interviews conducted by Innovative Research Group. For more information, DIY Investing: New Investors and the role of social media.

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Unexpected Curves − Remarks By Professor Alan Taylor, Bank Of England, External Member Of The Monetary Policy Committee, Given At The ECB Forum On Central Banking In Sintra, Portugal

In his panel remarks, Alan Taylor outlines his view on interest rates in the long run. He shows that model-based neutral rates can predict policy rates. He explains why he would prefer the Bank to regularly talk about where interest rates are going. Professor Alan Taylor External member of the Monetary Policy Committee Click here for full details.

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Shining A Light On Private Markets - Speech By Sarah Pritchard, UK Financial Conduct Authority, Deputy Chief Executive, At The Investment Association's Private Markets Summit

Speaker: Sarah Pritchard, deputy chief executive Event: The Investment Association’s Private Markets Summit Delivered: 2 July 2025  Highlights Private markets are growing in importance and have significant potential to drive innovation and economic growth. But to grow sustainably and earn investor confidence, the risks and opportunities must be illuminated. The FCA is supporting this effort through work to improve understanding of key areas such as valuations and leverage, including at international level. It’s clear that stronger data will be key. This reflects the FCA’s shift towards outcomes-focused regulation: giving firms more freedom to innovate, while making sure investors have the clarity they need to make informed decisions.  It’s great to be here at the first Private Markets Summit. And to be giving my first speech as the new deputy chief executive of the FCA. A few people have asked what differences I’ve noticed since stepping into my new role.   Well for one, you get asked to give a lot more speeches – thanks to the Investment Association for inviting me today.   And you quickly realise the spotlight is brighter – in more ways than one! But the most important difference is what that spotlight allows you to see. And what it can help you to illuminate. Nowhere is that more relevant - and perhaps more needed - than in private markets.   They are becoming increasingly central to our economy, but their form, structure, and accessibility are still evolving. That means parts still sit in the shadows, not yet fully visible to investors, policymakers or even regulators. So this afternoon, I want to talk about how the FCA is helping to bring more of these markets out of the shadows and into the light. To better understand the risks, and in doing so, to help unlock their huge potential for innovation and growth. Private markets in the spotlight Let’s start with the obvious: private markets are more important than ever. Once seen as more of a niche, they are now a core part of the financial system. Today’s Summit is proof of that. The numbers really are striking: global private markets assets under management (AUM) hit $15.5 trillion at the end of last year - triple just a decade ago. In the UK alone, it’s £1.2 trillion - over half of all European private market AUM. And beneath those headline figures lies a deeper shift: a fundamental change in how capital is formed, how long-term finance is raised, and how investors are thinking about diversification. We’re seeing increasing numbers of asset managers investing in private markets to meet demand.   That has real economic significance – not just for the financial services industry, but for the UK’s long-term growth story too. The Prime Minister has said economic growth is his number one mission (PDF)Link is external .   And last week the Government published its Industrial StrategyLink is external, with the ambition for the UK to be the world’s most innovative full-service financial centre by 2035. Private markets have a key role to play in helping achieve both of those aims... Channelling patient capital into parts of the economy that need it most – infrastructure, innovation, growth-stage businesses – and driving innovation and productivity. Some still position public and private markets as binary options.   As if we must choose between transparency or flexibility, scale or specialism, liquidity or long-term commitment. That split feels outdated to me.   The boundaries are blurring. More and more we see the two working together – through listed funds, hybrid structures and evolving investment models. That creates complexity, yes. But also opportunity.   Opportunity to move beyond silos, and to design a system that works as a continuum – delivering growth, resilience and better outcomes across the board. Turning on the lights Former SEC Commissioner Allison Herren Lee observed how private markets have been ‘going dark’ – growing rapidly in scale and influence, but without the visibility that underpins confident investing. As regulators, and as an industry, we need to address that.   Not by dimming the opportunity, but by bringing the risks out from the shadows. Let me share some examples of how the FCA is doing that. First, valuations. Infrequent trading in private markets requires firms to estimate asset values.   This introduces a risk of firms inappropriately valuing private assets, potentially causing harm to both investors and market integrity. So the FCA recently completed a review of valuation practices – looking across private equity, venture capital, private debt and infrastructure assets. There was a lot to be encouraged by: quality reporting to investors, firms using third party advisers, documenting assumptions, and applying valuation methods consistently. Of course, there are areas for improvement: ensuring functional independence, managing conflicts, and defined processes for handling ad hoc valuations. But generally, we found firms recognised the importance of getting this right. They understood that strong valuations build investor trust, in turn supporting the sustainable growth of private markets. We know some people expected a sledgehammer. But the review wasn’t about finger pointing and lights shone directly into eyes. It was about genuine illumination – to highlight risks, yes, but also to share examples of good practices. So that together, we can raise standards across the board. This is important work, which we are happy is feeding into IOSCO’s review of valuation principles, and to the Bank of England’s broader work on financial stability. Next up, we will be reviewing conflicts of interest at firms managing private assets. And this is alongside actively shaping the future of AIFMD in the UK. Earlier this year, the FCA published a Call for Input about how we might regulate AIFMs if the Government makes its proposed changes to the scope and perimeter of the regime.   We see a strong case for retaining, but substantially improving, the existing framework.   In particular, to create a more effective and proportionate regime - especially for smaller and mid-sized firms – that is tailored to the UK market and enhances growth.   We’re currently exploring how thresholds are set, how risk management applies differently across models, and how to encourage growth without exposing investors to avoidable harm. Those are some examples of the domestic work underway. On the international side, we’ve been looking closely at leverage. Leverage is of course not inherently a risk. Used well, it fuels growth. But too much, or poorly timed, and leverage turns into fragility. Threatening both firms and the stability of the wider market. This is a particular concern in core markets, where we see concentrated or crowded leverage, or when a leveraged NFBI is heavily interlinked with a systemically important institution.   The gilts/LDI dislocation of 2022, and the nickel crisis the same year, being prime examples. The comparatively opaque nature of private markets can make risk identification and management tricky, both for firms and regulators. So I’m really pleased to have co-chaired the Financial Stability Board (FSB)’s Working Group on Leverage in NBFI, to understand how leverage moves through the system, where leverage may cause financial stability risks, and to build a stronger international framework. The FSB will publish its final recommendations later this month. What is very clear, is that good data isn’t just a nice-to-have. It’s a necessity. It’s how firms can spot build-ups of concentrated or crowded leverage early, and manage their risk appropriately.   And it’s how we as regulators can get the visibility we need to act proportionately and effectively. The first stage of the international leverage work I just mentioned was focused on establishing a baseline: identifying what data is already available across jurisdictions.   We found that although data and reporting already exists, it isn’t always timely. It is sometimes fragmented across jurisdictions, and it isn’t always comparable. This exercise has given us valuable insights on how we can improve going forwards – and is part of our wider efforts to strengthen our global network and international reputation.   Just yesterday, the FCA’s new Asia-Pacific director started in post, helping local firms navigate entry into the UK market, and supporting UK firms expanding into the APAC region. And here at home, we’re also focused on using data smarter. Switching off returns we no longer need, and consulting this summer on retiring more. But we need data to do our job.   Firms need to be prepared to report to us, and to invest in their data infrastructure, so that it can be submitted to us in ways that are timely and consistent.   That’s something we will engage with you on, so that we are collecting data in a way that is cost-effective for firms, but proportionate to our supervisory needs. Better data will ultimately benefit every person in this room. This isn’t about de-risking markets. It’s about making sure the risks we run are visible, manageable, and intentional. That is how we safeguard market integrity and market confidence – the building blocks of growth. Illuminating risk These examples I’ve shared point to something bigger: the need for a more open national debate around risk.   That’s something our chief executive Nikhil Rathi has consistently called for, alongside metrics for tolerable failures. Not only so that we can collectively move forward with a confident consensus, but also so that the stance we shift to endures. Now is the time to have this debate – particularly as we consider how retail investors might access private markets.   Many argue that retail participation in our capital markets is too low. A ‘missing ingredient’ for our success compared to other jurisdictions.   The FCA’s position – in our strategy (PDF) – is that we want to help people navigate their financial lives.   That means different things for different people. For some, private markets exposure, with the right information and support, might be appropriate. For others, it will not. So this is less a question of ‘open’ or ‘closed’, and more a question of how access is enabled, and for whom.   When we introduced long-term asset funds (LTAFs) into UK retail markets, we took a considered approach and expanded access sensibly.   Insisting on clear ownership of the risks by product providers and retail investors, and the use of the right fund structures for investments that are inherently illiquid. We sought views on whether they should be subject to FSCS consumer protection, recognising that LTAFs come with different risks to other investments.   And when we had strong feedback that they should - in order to build confidence - that is what we decided to do. It’s important that consumers can make informed decisions based on their own risk appetite.   The Consumer Duty gives us a strong framework - placing the onus on firms who have a material influence over retail consumers to consider outcomes, not just disclosures.   That offers opportunities for us to consider whether some of our requirements are unnecessarily restrictive, or not properly calibrated. At the same time, we’re reforming retail disclosures and through the Advice Guidance Boundary Review, exploring what more can be done to support confident investing.   We have just published our consultation with targeted support proposals for pensions and investments, and are keen to hear your views.   This is a once-in-a-generation set of reforms, intended to help people make informed decisions about their finances, plan for the long term, and build a more assured retail investment culture. We are confident that more people could benefit from access to private markets, in time. And we’re open-minded about how retail access could be expanded.   But only if the right guardrails are in place, and with widespread acceptance that some people may have access to fewer protections than they do today. Role of the regulator That’s where we come in. A regulator cannot – and should not – prescribe every turn these markets make. But we can help set the direction and build those guardrails. The FCA’s regulatory philosophy is shifting. Moving away from building protections through pre-emptive hard-edged gates and checks, towards a world of transparency and disclosures. Giving firms more freedom to act, while making sure investors have the clarity they need to make informed decisions. It means being more focused on outcomes. And open to collaboration and new ideas.   We used to be seen as the people who said ‘no’ or ‘what if’. I hope that today, we’re more likely to be the people asking or ‘why not?’ and ‘how can we achieve this?’ But this shift in approach requires a shift in industry too.   A move to outcomes-focused regulation means we will not be writing detailed instructions for how every firm should operate. That is simply not possible given how varied the market is, and how quickly it is changing.   Innovation is happening everywhere in our wholesale markets – in fund design, in tokenisation, in how data and AI are being used across the value chain. We want to make it easier to bring those ideas to market safely and confidently. A regulator that enables innovation by design. Our Innovation Function celebrated its 10th birthday last year, but we’re just getting started.   We are continuing to invest heavily in those capabilities - from our world-leading Sandboxes, to our early engagement programmes, to our new AI Lab which recently launched AI Live Testing. But even where our role is not to regulate innovation directly, it often helps to have a regulator in the room. To spot risks early. To provide clarity. And to create space for safe experimentation. Regulation doesn’t need to be a brake. Done right, it’s a stabiliser – helping firms go further, faster and with confidence. Conclusion I said earlier that stepping into my new role comes with more visibility. But it also comes with greater responsibility. Responsibility to focus our regulatory beams where they matter most. Private markets are growing, evolving, becoming more central to how investors diversify and how our economy grows. So we need a regulatory approach that keeps pace – one that is active, forward-looking, and aligned to the reality of the world we live in. More light. More clarity. More action. I hope the examples I’ve shared today show you that the FCA is not standing on the sidelines. We’re shining a light in the areas that matter - making sure both the risks and the opportunities are visible to regulators, firms and investors.   And we are doing that with a clear philosophy. And a sharp sense of purpose, rooted in partnership and long-term thinking. That’s how confidence grows, how innovation scales, and how private markets can continue to shine. 

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Finansinspektionen: Jimmy Leonborn Appointed New Head Of IT

Jimmy Leonborn is the new executive director of IT and will also join FI's management team. He will take over on October 1. He most recently served as CIO at Kommuninvest. Prior to that, he held various roles at, among others, Kumla kommun and the City Planning Office of the City of Stockholm.  He will take over on October 1.

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CME Group Completes First Delivery Cycle Of Hard Red Spring Wheat Futures

CME Group, the world's leading derivatives marketplace, today announced that it has completed its first physical delivery cycle of Hard Red Spring Wheat futures, with 182 contracts delivered on July 1, 2025, the first delivery date since the product's April 14 launch. "Completion of the first delivery cycle is another important milestone for our new Hard Red Spring Wheat futures contract," said John Ricci, Managing Director and Global Head of Agricultural Products at CME Group. "The contract is already providing value, with over 460,000 contracts traded since the April launch as more industry participants turn to CME Group to manage all aspects of wheat market risk."  Hard Red Spring Wheat futures are physically delivered using shipping certificates, with delivery locations including the Minneapolis/St. Paul/Red Wing and Duluth/Superior switching districts, and an origin point in the Red River Valley encompassing eastern North Dakota and northwestern Minnesota. All of CME Group's wheat products are cleared within a single clearing house, offering additional capital efficiencies and increased spread capabilities to market participants.  Hard Red Spring Wheat futures and options are listed by and subject to the rules of CBOT. For more information on Hard Red Spring Wheat, please visit here. 

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OCC June 2025 Monthly Volume Data

The OCC reported today that the year-to-date average daily trading volume through June 2025 reached 57,575,837 contracts. Additionally, the total trading volume for June 2025 alone amounted to an impressive 1,109,450,761 contracts. Contract Volume    June 2025 Contracts June 2024 Contracts % Change 2025 YTD ADV 2024 YTD ADV % Change Equity Options 605,122,672 518,943,735 16.6% 30,400,886 24,716,932 23.0% ETF Options 406,401,384 318,684,885 27.5% 22,186,695 17,957,921 23.5% Index Options 94,228,018 75,389,720 25.0% 4,755,497 4,105,184 15.8% Total Options 1,105,752,074 913,018,340 21.1% 57,343,078 46,780,037 22.6% Futures 3,698,687 4,467,172 -17.2% 232,760 237,096 -1.8% Total Volume 1,109,450,761 917,485,512 20.9% 57,575,837 47,017,133 22.5% Securities Lending   June 2025 Avg. Daily Loan Value June 2024 Avg. Daily Loan Value % Change June 2025 Total Transactions June 2024 Total Transactions % Change Market Loan + Hedge Total 179,807,049,944 163,728,187,483 9.8%  312,759  215,221 45.32% Additional Data Market share volume by exchange Open interest Historical volume statistics

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June Sales At Small Businesses Rise From Last Year, But Consumers Pulled Back Compared To May

Fiserv Small Business Index declines two points to 148 Small business sales grew +4.4% year over year, but declined -1.4% month over month Fiserv, Inc. (NYSE: FI), a leading global provider of payments and financial services technology, has published the Fiserv Small Business Index for June 2025, with the seasonally-adjusted Index declining two points to 148. Year-over-year sales (+4.4%) remained strong in June while month-over-month sales (-1.4%) declined, reflecting a slowdown in consumer activity. Foot traffic (transactions) followed a similar trend, growing (+2.2%) year over year but slowing (-2.0%) month over month. Average ticket sizes grew significantly (+2.1%) compared to 2024 and rose (+0.6%) month over month, particularly in non-discretionary categories where consumers continue to spend. "Small business sales continue to be impacted by economic uncertainty, causing many consumers to spend with more caution,” said Prasanna Dhore, Chief Data Officer, Fiserv. “Discretionary spending declined again in June, and consumers diverted more dollars to the essentials.” Services Continue to Outpace Goods Compared to June 2024, sales of Services (+5.2%) outperformed Goods (+2.3%), an ongoing trend for 2025. Service-based businesses seeing strong year-over-year growth included Food Manufacturing (+11.7%) and Professional Services (+9.0%). Compared to May 2025, Services (-1.2%) declined, though not as much as Goods (-2.0%). Some service-based categories showed month-over-month growth, including Administration and Support Services, Education, Hospitals, and Rental and Leasing Services. Declining Foot Traffic Slows Restaurant Sales Growth Consumer spending at small business restaurants grew slightly (+0.4%) year over year while experiencing sharper declines (-2.6%) when compared to May 2025. Month-over-month sales declines were the result of foot traffic slipping (-2.5%) compared to May, which had already seen a -5.6% drop from April. This directly affected sales, despite average ticket sizes (-0.1%) remaining relatively flat. Retail Growth Cools in June, Despite Year-over-Year Strength In June 2025, retail sales decreased (-1.7%) month over month, while growing (+1.7%) year over year. Transactions followed a similar trend with a month-over-month decrease (-1.0%) and year-over-year growth (+1.9%). The only retail subsector with month-over-month gains was Food & Beverage Retail (+0.9%). Year over year shows a more positive story, as most retail subsectors continued to see growth, including Furniture, Electronics and Appliances (+4.5%), Food & Beverage Retail (+4.1%), and Sporting Goods (+3.4%). Smaller States Drive Regional Growth Compared to May, small business sales grew in 10 of 50 states, following a pattern of spotty growth nationwide. The most aggressive month-over-month sales growth was concentrated among smaller states, led by Alabama (+3.5%), North Dakota (+5.8%) and Alaska (+6.1%). Larger states, including California (-2.3%), New York (-4.2%) and Texas (-1.2%), experienced month-over-month sales declines. Among major metropolitan areas, San Francisco (+8.5%) and Atlanta (+13.6%) were the strongest-performing large cities for small business sales growth year over year. Month-over-month sales growth among large metro areas was limited to Boston (+1.2%). About the Fiserv Small Business Index® The Fiserv Small Business Index is published during the first week of every month and differentiated by its direct aggregation of consumer spending activity within the U.S. small business ecosystem. Rather than relying on survey or sentiment data, the Fiserv Small Business Index is derived from point-of-sale transaction data, including card, cash, and check transactions in-store and online across approximately 2 million U.S. small businesses, including hundreds of thousands leveraging the Clover point-of-sale and business management platform. Benchmarked to 2019, the Fiserv Small Business Index provides a numeric value measuring consumer spending, with an accompanying transaction index measuring customer traffic. Through a simple interface, users can access data by region, state, and/or across business types categorized by the North American Industry Classification System (NAICS). Computing a monthly index for 16 sectors and 34 sub-sectors, the Fiserv Small Business Index provides a timely, reliable and consistent measure of small business performance even in industries where large businesses dominate. To access the full Fiserv Small Business Index, visit fiserv.com/FiservSmallBusinessIndex.

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CME Group Sets Record Quarterly And June ADV, Driven By Growth Across Asset Classes

Record quarterly ADV of 30.2 million contracts Record quarterly ADV in interest rates, agriculture, metals and SOFR futures Record June ADV of 25.7 million contracts Record quarterly international ADV of 9.2 million contracts CME Group, the world's leading derivatives marketplace, today reported its Q2 and June 2025 market statistics, with average daily volume (ADV) reaching a new quarterly record of 30.2 million contracts and June ADV reaching a record 25.7 million contracts. In Q2, the company's ADV grew 15% year-over-year, with record quarterly volume in interest rate, agricultural and metals products. CME Group's deeply liquid SOFR futures also hit a quarterly ADV record of 4.6 million contracts. Market statistics are available in greater detail at https://cmegroupinc.gcs-web.com/monthly-volume. Q2 2025 highlights across asset classes compared to Q2 2024 include: Record quarterly Interest Rate ADV of 15.5 million contracts Record 5-Year U.S Treasury Note futures ADV of 2 million contracts Record 2-Year U.S. Treasury Note futures ADV of 1.1 million contracts 10-Year U.S Treasury Note futures ADV increased 3% to 2.5 million contracts SOFR options ADV increased 22% to 1.5 million contracts Equity Index ADV increased 13% to 7.7 million contracts Record Micro E-mini S&P 500 futures ADV of 1.5 million contracts Micro E-mini Nasdaq 100 futures ADV increased 31% to 1.7 million contracts E-mini Russell 2000 futures ADV increased 16% to 234,000 contracts Energy ADV increased 26% to 3.1 million contracts Record quarterly WTI Crude Oil options ADV of 265,000 contracts Henry Hub Natural Gas futures ADV increased 7% to 585,000 contracts Henry Hub Natural Gas options ADV increased 20% to 273,000 contracts Record quarterly Agricultural ADV of 2 million contracts Record Soybean Oil futures ADV of 210,000 contracts Corn futures ADV increased 4% to 478,000 contracts Agricultural options ADV increased 4% to 367,000 contracts Foreign Exchange ADV increased 2% to 1.1 million contracts Japanese Yen futures ADV increased 12% to 202,000 contracts Record quarterly Metals ADV of 943,000 contracts Record Micro Gold futures ADV of 302,000 contracts Record Gold options ADV of 100,000 contracts Record Platinum futures ADV of 44,000 contracts Cryptocurrency ADV increased 136% to 190,000 contracts Record Micro Ether futures ADV of 84,000 contracts Record Ether futures ADV of 16,000 contracts Micro Bitcoin futures ADV increased 93% to 65,000 contracts Record quarterly International ADV of 9.2 million contracts, including record EMEA ADV of 6.7 million contracts and record APAC ADV of 2.2 million contracts June 2025 highlights compared to June 2024 include: Interest Rate ADV increased 1% to 11.6 million contracts SOFR futures ADV increased 20% to 3.8 million contracts SOFR options ADV increased 27% to 1.3 million contracts 30-Day Fed Funds futures ADV increased 30% to 400,000 contracts Equity Index ADV of 6.6 million contracts Micro E-mini S&P 500 futures ADV increased 25% to 1.1 million contracts Energy ADV increased 36% to 3.4 million contracts Record monthly WTI Crude Oil options ADV of 307,000 contracts WTI Crude Oil futures ADV increased 48% to 1.5 million contracts NY Heating Oil futures ADV increased 39% to 261,000 contracts Agricultural ADV of 2.1 million contracts Record monthly Soybean Oil futures ADV of 244,000 contracts Metals ADV increased 21% to 848,000 contracts Record monthly Platinum futures ADV of 67,000 contracts Micro Gold futures ADV increased 186% to 258,000 contracts Cryptocurrency ADV increased 133% to 190,000 contracts Record monthly Ether futures ADV of 17,000 contracts Micro Ether futures ADV increased 233% to 98,000 contracts Micro Bitcoin futures ADV increased 65% to 53,000 contracts Micro Products ADV Micro E-mini Equity Index futures and options ADV of 2.6 million contracts represented 40.1% of overall Equity Index ADV and Micro WTI Crude Oil futures accounted for 4% of overall Energy ADV BrokerTec U.S. Repo average daily notional value (ADNV) increased 18% to $359 billion EBS Spot FX ADNV increased 10% to $64 billion and FX Link ADV increased 29% to 38,000 contracts ($3.6 billion notional per leg) Customer average collateral balances to meet performance bond requirements for rolling 3-months ending May 2025 were $118 billion for cash collateral and $151.2 billion for non-cash collateral

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LSEG Data & Analytics Unveils Powerful New Analytics Feed To Decode Corporate Voice

LSEG Data & Analytics today launched LSEG MarketPsych Transcript Analytics, a cutting-edge Data and Feeds solution designed to transform corporate transcripts into structured, actionable intelligence. Eric Fischkin, Director, LSEG Data & Analytics, said: “LSEG MarketPsych Transcript Analytics gives clients a fast, systematic way to integrate the voices of corporate leaders, institutional investors, and research analysts into their strategies. By applying the latest advances in Natural Language Processing and MarketPsych’s decades of experience transforming financial text into systematic inputs, the solution empowers users across investment management, ESG analysis, and risk management to uncover hidden signals and behavioral patterns at scale.” Built for an era where investor decisions are increasingly shaped by nuanced communication, the solution scores emotions, sentiment, topic relevance across corporate earnings calls, guidance updates, and other key events. Covering over 16,000 global public companies, it offers real-time insights by identifying more than 20 entity types, including companies, currencies, and commodities. The solution maps over 1,000 business topics and 4,000 discrete events. To learn more, visit LSEG MarketPsych Transcript Analytics.

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LuxSE Launches A New Innovative Transition Finance Gateway

Today, the Luxembourg Stock Exchange (LuxSE) announced the launch of a brand-new initiative which aims to support issuers in their transition journey and provide transparency to investors. The Transition Finance Gateway shines the spotlight on the exchange’s some 500+ non-financial corporate debt issuers across both conventional and sustainable bonds. Leveraging the powerful transition data of four data providers - CDP, the Net Zero Tracker, the Science-Based Targets Initiative (SBTi) and the Transition Pathway Initiative (TPI) Centre. This marks a new step for LuxSE as it shifts its attention from security-focused to entity-level analysis. “With the introduction of our Transition Finance Gateway, the Luxembourg Stock Exchange reaffirms its commitment to pioneering solutions that facilitate the transition to a low-carbon economy. This innovative platform is designed to provide a comprehensive view of climate transition efforts, enhancing the transparency and comparability that are crucial for informed decision-making. By consolidating transition data from leading providers, we are not just facilitating market engagement but also driving meaningful change. This initiative underscores our dedication to supporting the financial community in navigating the complexities of the climate transition and fostering a more resilient future,” commented Julie Becker, Chief Executive Officer of LuxSE.  Empowering the market with transition tools In 2024, global temperatures exceeded the significant 1.5-degree mark above pre-industrial levels according to the International Energy Agency (IEA). This means that the transition towards a low-carbon economy is more crucial than ever and more needs to be done to help entities – especially those operating in emerging markets or hard-to-abate sectors – communicate on their transition finance journey. “In a time when others are stepping away from this area of the market, we – together with the four data providers – are stepping up to promote clarity, comparability, and harmonisation on the climate transition. We need to make sure that issuers and investors alike have the opportunity to play their role in this important mission and our Transition Finance Gateway yet again highlights our commitment to facilitating and mobilising the market,” commented Laetitia Hamon, Head of Operations and Sustainable Finance at LuxSE. Collaborating with climate transition data experts The Transition Finance Gateway is the result of countless months of work and collaboration between LuxSE and four renowned data providers - CDP, the Net Zero Tracker, the SBTi and the TPI Centre. “Our collaboration with the Luxembourg Stock Exchange exemplifies our commitment to making high-quality environmental data accessible and actionable. By disclosing once through CDP, organisations can power multiple uses such as the Transition Finance Gateway, while investors gain consistent, comparable data to inform decisions and accelerate the shift to an Earth-positive, low-carbon economy. This Gateway is a vital tool to connect both sides of the market with the insights needed to drive meaningful, sustainable change,” commented Torun Reinhammar, Head of Capital Markets, Europe at CDP. “At the Net Zero Tracker, we believe transparency is the cornerstone of credible climate commitments that precede effective action. The Transition Finance Gateway is a significant step forward in closing the accountability gap between issuers and investors by shedding light on corporate net zero targets and transition planning. By making our data accessible in this way, LuxSE is helping drive the market towards real-economy emissions reductions, especially in sectors and regions where clarity is most needed,” commented John Lang, Project Lead at the Net Zero Tracker. “The launch of LuxSE’s Transition Finance Gateway is a major step forward in increasing transparency and accountability in climate finance. It helps global stakeholders understand the level of climate ambition in the financial sector and track progress toward meaningful action. This insight can guide smarter investments and support a more resilient, net-zero future,” commented Tracy Wyman, Chief Impact Officer at the SBTi. “TPI Centre’s mission is to provide independent, rigorous, forward-looking research and data to enable investors to support the transition to a low-carbon economy.  We welcome LuxSE’s initiative, as it targets primarily fixed income investors and bond issuers, who play a crucial role in transition finance and do not feature prominently enough in the transition debate. The Gateway, which we are delighted to support, will contribute to spotlight disclosure in debt capital markets and promote informed investment-corporate engagement,” commented Carmen Nuzzo, Professor in Practice and Executive Director of the TPI Centre at the London School of Economics and Political Science, TPI’s academic partner. Unlocking new opportunities for the market Free-to-use and accessible directly on the website of LuxSE, the Transition Finance Gateway provides users with a number of important benefits. For issuers displayed on the Gateway, it is a way of supporting and promoting their climate transition journey. The Gateway enables them to use their dedicated Transition Finance Gateway issuer page to showcase their efforts to stakeholders as well as complementary information that further highlights the concrete actions that they are taking to transition.  It also allows them to see how their peers are establishing credible climate transition pathways and so, can help to facilitate their own journey. For investors, the Transition Finance Gateway brings the transparency and clarity needed to support the climate transition. The Gateway also includes climate transition data on issuers operating in emerging markets and hard-to-abate sectors that play a crucial role in the climate transition. Just the beginning With more features and tools currently under development in LuxSE’s broader transition finance mission, the Transition Finance Gateway is the exchange’s inaugural and concrete way of supporting its non-financial corporate debt issuers and the climate transition. Additional features in the Gateway along with entirely new products around this theme are currently being developed. For more information, please visit the Transition Finance Gateway webpage or get direct access to the Gateway by clicking here.

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Global Firms Grapple With North American T+1: New Study Reveals Early Impacts - New Analysis From Vermiculus And GreySpark Partners Reveals Timing Misalignments, FX Friction, And Staffing Pressures As Firms In Europe And Asia Adapt To North America's Faster Settlement Cycle

Vermiculus, a leading provider of market infrastructure technology, in collaboration with capital market research firm GreySpark Partners, has released a new study examining the global implications of the recent T+1 trade settlement mandate in North America. While the transition has been largely successful for U.S. firms, the report reveals operational and regulatory challenges for financial institutions across Europe and the Asia-Pacific (APAC) region.   The switch from T+2 to T+1 settlement tightens the post-trade processing timeline significantly. For global firms operating in different time zones, that translates into after-hours work, FX execution under time pressure, and growing risk of settlement failure.  “With the shift to T+1, especially across time zones, automated affirmation and allocation processes are no longer optional. Firms must act now to get ready for the shortened settlement cycles driven by global, 24/7 trading in the future. Systems will be moving towards proactivity, with pre-trade risk calculations and pre-funding in place,” says Lars-Göran Larsson, industry expert at Vermiculus.    Lars-Göran Larsson, Industry Expert at Vermiculus The report ends with the observation that 24/7 trading and real-time settlement will be the ultimate bar for traditional trading technology – a future not too far off. As the lines blur between digital and traditional assets, the pressure is mounting on firms to modernize their post-trade infrastructure accordingly.   Read the full report: International implications of the North American T+1 Settlement Rules  For insights on how the T+1 transition has affected North American firms, read our earlier report here: Implications of T+1 Settlement on North American Markets

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Building Tomorrow’s Markets: The Digitalisation Of Finance − Speech By Sasha Mills, Bank Of England, Executive Director, Financial Market Infrastructure, Given At UK Finance Digital Innovation Summit 2025

In this speech, Sasha discusses building a digital financial system featuring tokenisation and distributed ledgers alongside the existing system. She highlights the need for innovation, regulatory clarity, and interoperability with existing systems to ensure stability, efficiency, and confidence in the evolving financial landscape. Sasha Mills Executive Director, Financial Market Infrastructure Speech Thank you for inviting me to speak at City Week again this year, it is a pleasure to be back. Building a digital financial system that realises the benefits of new technologies, coexists with existing technologies and supports innovation to explore and extract efficiencies safely is the best way to support the international markets London has long hosted, as well as ensuring payments networks continue to underpin commerce. Today I am going to talk about how we can harness innovation to develop the foundations and functions of tomorrow’s financial markets, how they fit together and key developments to build that future, including our updated thinking on settlement assets. We view digitalisation of wholesale financial markets as a way to improve their function and efficiency through the use of new and innovative approaches to technologies and using data. Tokenisation of assets (digital representation of financial assets using Distributed Ledger Technology, or DLT) and smart contracts on programmable and shared ledgers can deepen existing markets, unlock new ones, and change how asset classes, capital, and balance sheets can be mobilised within the financial system. As we build this new ecosystem, we should not forget the hard learnt lessons of the past. Money requires confidence to support economic activity and growth in good times and bad. A lack of trust in money speaks to financial instability, as we’ve seen countless times in history. Participants in real economy and financial transactions require certainty that settlement is final – ownership and payment. Without that, we might see cascading failures in leveraged markets. Building the new ecosystem should protect these principles to maintain financial stability, adhere to same risk, same regulatory outcome and give space to innovators to compete to deliver solutions. That is what we are here to ensure. This innovation has to take place alongside the existing financial system, in the same way modern structures sit side-by-side with the City of London’s historic buildings. Foundations for financial markets - the regulatory structures – need to support both new and old in a mixed ecosystem and help them interoperate together. How information flows around the financial system has largely remained unchanged in the modern age. It is, in effect, an analogue market that has operated in broadly the same way, on similar technology, since the 1970s. For example, securities can still exist as physical certificates; market participants rely on millions of messages every day to manage transactions and associated post-trade processes; and many of these processes are still centred around an ‘end of day’ that is increasingly at odds with a 24/7 global financial system. While established structures are important in an ecosystem, they become more complex and more expensive to maintain as they are adapted to meet updated needs. We are all familiar with our roads being dug up to improve utilities or simply strengthen the structures, frequently long after users of these services have borne the consequences of weak supply. In financial markets we see similar trends, where investment in the critical post-trade environment has lagged behind ‘front office’ functions where increasingly faster communications and executions can provide a critical edge. The Bank’s 2020 Future of Post-Trade Report found that 75% of IT spend is to ‘keep the lights on’ rather than introduce efficiencies.footnote[1] While the existing infrastructure is increasingly obsolescent, there is reticence to invest in new technology at scale without having a better sense of what the future might look like. At some point, it makes more sense to build new structures than try to modify the existing ones. In our view, this point in time is fast approaching, if not already here. So, how can we ensure that the foundations are secure to provide more confidence in investing and building the next generation of our financial system? Foundations of Digitalisation The Bank has a key oversight role in the planning process for the new structures of our financial system,footnote[2] while at the same time preserving the integrity of the existing ones during their construction. Through our secondary innovation objective and to play our part to support this growth, we are being more proactive in looking at aspects of regulation that could be barriers to new technologies; weighing up our decision making to incentivise both existing FMIs and new entrants to the market; and engaging in constant dialogue with industry to ensure that our approach can deliver the objectives of both sides. Since I spoke here last year, we have made significant progress in laying the foundations for new structures. The Digital Securities Sandbox (DSS) has seen considerable interest, with new entrants and incumbents alike entering the regime. The DSS has also shown the value of a tangible use case: the UK Government’s Digital Gilt pilot (DIGIT), which will issue government debt on a distributed ledger, has led to an uptick in firms entering the DSS. In addition to DIGIT, entrants to the DSS have presented us with a variety of use cases, beyond the drive for greater efficiency in post-trade activity that was the original use case that gave us the impetus to launch the DSS. Some firms are also exploring how tokenisation of assets could make it more straightforward to move assets around the financial system. This can remove operational and technical barriers, open up activity that was not previously possible like intraday repos, and can also expand the pool of assets in the system that can be utilised as collateral. In other cases, the ease and cost of setting up DLT infrastructure is deepening markets in corners of the financial system that were not well served by legacy systems, such as gold, fund management, and private markets. In terms of the technology being put forward, we’re pleased to see that firms have advanced a mix of solutions: private and public, permissioned and permissionless ledgers. This sets us up well as regulators to get the most out of the Sandbox and write sensible regulations for a new age that is informed by a variety of live transactions following different business models. But transactions need to be paid for, and having a digitally compatible or digitally native means of payments with minimum credit, market and liquidity risk is a critical part of the future ecosystem. The Bank is not just responsible for laying the foundations through regulation. We are an infrastructure operator and a participant in the financial system, and we can leverage this unique position to build and induce change ensuring functionality of the future ecosystem. As part of building that capability this year saw the milestone upgrade of our Real Time Gross Settlement (RTGS) service. This will be the cornerstone of innovation in wholesale payments, and in turn innovation in the financial markets these payments underpin. It will provide greater resilience, wider access, enhanced interoperability and improved functionality for settlement in the ultimate risk-free settlement asset, central bank money. Access to and confidence in settlement assets needs to be maintained. For example, the Bank now offers omnibus accounts for RTGS participants and is the first central bank to onboard a DLT-based private payments operator in Fnality. We are committed to enhancing access to more firms, and different types of firms, including more non-bank payment service providers, and our current ambition is to extend settlement hours in RTGS to reduce cross-border frictions and lower settlement risk. Modern rails and trains – paying for digital assets digitally UK authorities need to legitimise the utility of tokenised assets and payments to safely support growth in the financial system. Most critically, this includes the settlement assets used, whether they are existing or novel forms of money. We will soon be consulting on the UK’s systemic stablecoin regime, following up from our Discussion Paper on systemic retail stablecoins published in November 2023.footnote[3] This will sit alongside the FCA’s consultation on their requirements for non-systemic stablecoins, which has already been published. It’s important to emphasise that when designing the Bank’s proposed requirements, we tried to be forward-looking and consider what standards stablecoins would need to meet. Firms in the stablecoin industry should also be forward looking and look closely at the Bank’s stablecoin requirements if they plan for their stablecoins to be used widely for retail payments for goods and services. The stablecoin landscape has moved on a lot since 2023, and we have considered those changes alongside industry feedback. One message that comes through strongly is that the Bank’s initial proposal, where all of the backing assets would have to be invested in unremunerated central bank deposits, would not result in a viable business model. As noted in recent remarks by Sarah Breeden,footnote[4] we are now minded to allow for a proportion of backing assets to be remunerated. We consider that this should happen by allowing a proportion of backing assets to be invested in High Quality Liquid Assets (HQLA). We think this will support innovation in the UK while maintaining confidence in money and allow for a smoother transition from FCA to Bank requirements within the UK stablecoin regime. Consistent with our position in the November 2023 Discussion Paper, we are also considering introducing holding limits for systemic stablecoins. These limits would be transitional and allow the financial system to adjust to new forms of digital money. The Bank considers it likely that, at least during a transition, limits would be needed for stablecoins used in systemic payment systems, to mitigate financial stability risks stemming from large and rapid outflows of deposits from the banking sector – for example sudden drops in the provision of credit to businesses and households – and risks posed by newly recognised systemic payment systems as they are scaling up. If implemented, these limits would likely be in the region of £10-20k for individuals and £10mn for businesses. But to be clear, we are still engaging with industry and listening to feedback, so these proposals are not finalised. We will be consulting on the precise details of this and other parts of the Bank’s requirements later this year. Relatedly, we are also considering what role stablecoins could play in wholesale markets. The Bank has always been clear that central bank money should be the primary settlement asset in the financial system, and we are innovating central bank money to ensure this remains the case, as I’ll touch on in a moment. But we are also open minded to stablecoins being able to provide innovation that could also be useful for wholesale markets. We are therefore considering the role that stablecoins could play in supporting innovation in the Digital Securities Sandbox. We will be putting out further information on this later in the year. Alongside stablecoins, tokenised deposits are emerging as a promising innovation within the regulated banking system. These are digital representations of commercial bank money recorded on programmable ledgers and are being looked at by banks to explore real-time, on-chain settlement while preserving the protections and credit creation capacity of traditional deposits. As David Bailey recently noted,footnote[5] they offer a pathway to innovation that aligns with financial stability and maintaining trust and confidence in money. The Bank is actively exploring how tokenised deposits can integrate with initiatives like the Digital Securities Sandbox and the National Payments Vision, ensuring that innovation is both safe and scalable. We are also engaging with industry on a range of industry-led solutions in this space, which we are pleased to see. As a payments systems operator, we also continue to build on the foundations laid by the renewal of our RTGS service. Yesterday at City Week, Victoria Cleland highlighted how this new system – RT2 – has been designed as a platform to enable further innovation.footnote[6] To ensure we continue to meet the evolving needs of the UK payments ecosystem, we have identified a series of enhancements as part of the Future Roadmap for RTGS. This includes working with industry on the introduction of a synchronisation interface (which would allow the conditional settlement of funds in RTGS accounts against assets on a variety of external asset ledgers – including those based on DLT). Victoria also gave an update on the Bank’s experiments in wholesale payments, which will test the relative merits of different methods of central bank money settlement for innovative payment systems. Subject matter expertise is spread across the industry, and while competition is critical in a well-functioning market, so is collaboration. We have recently launched a DLT Innovation Challenge in partnership with the BIS Innovation Hub in London, to engage with the private sector to better understand the implications of incorporating DLT into wholesale central bank settlement. I am confident that the Bank and other authorities will continue to seek to leverage our convening powers to turn potential into reality. Building on the foundations While these foundations are solid, there is much still to put in place to graduate to a financial system that has the capability to deliver faster and cheaper settlement, in line with the asks of the market participants. Tokenisation of assets will allow for rationalisation of processes and systems through normalising how asset classes are represented, and for smaller portions of these assets to be mobilised. Resolving certain legal and regulatory questions can unlock more efficient use of a wider range of high-quality assets, including those held on balance sheets, to support market activity. We can also look at how we support new entrants to the FMI landscape. As new materials and practices help make futuristic buildings more viable, tokenisation changes the economics of some business models, making new businesses viable. I have already highlighted the DSS, but we will shortly be publishing our approach to onboarding of new FMIs entering the Bank’s regulatory remit. This will set out a risk-based and proportionate approach for how firms can mobilise and scale as FMIs in our permanent regulatory regimes. A ‘mixed ecosystem’ where new and old structures co-exist in our financial system is likely for many years, possibly permanently. It is of limited benefit to have bifurcation of liquidity where assets exist within ‘walled gardens’ of old and new structures, or multiple new structures. These systems will need to interoperate – that is, to have synchronised transfers of assets on different ledgers or systems with minimal or no settlement risk. We are starting to see credible solutions for this problem, including using public blockchain networks. These can provide connectivity layers without compromising security and regulatory requirements of private systems, such as on-chain FMIs. There is much work to do to turn this concept into reality, and for regulators and users to have confidence in this structure. But this is no different to today’s venue, where there are public areas free for all to use, but controls and information required for people to access this conference. From our many discussions with industry, we have heard repeatedly that authorities including the Bank need to signal their support for digitalisation. Hopefully, my comments today will help provide some clarity on the future landscape that we see as regulators of, and operators within, the financial system. We want to continue working with industry to start building on the foundations we, and others, have put in place. It is time to move away from talking about potential and one-off demonstrations of the technology, and for all of us to start working together to deliver a new generation of the financial system that is befitting of London’s place as the heart of the global financial system. I would like to thank Alex Gee, Andrew Bailey, Sarah Breeden, Emma Butterworth, Barry King, Kushal Balluck, Pavel Chichkanov, Magda Rutkowska, Mei Jie Wang, Adeshini Naidoo, Nina Turnbull and John Jackson for their help in preparing these remarks. The Future of Post-Trade | Bank of England  Central bank oversight is defined by CPMI as a ‘function whereby the objectives of safety and efficiency are promoted by monitoring existing and planned systems, assessing them against these objectives and, where necessary, inducing change.’ Regulatory regime for systemic payment systems using stablecoins and related service providers | Bank of England International payment rails: the value of a harmonised gauge − speech by Sarah Breeden | Bank of England) Innovation and regulation - striking the balance - speech by David Bailey | Bank of England Synchronisation and beyond: enabling the next wave of financial innovation − speech by Victoria Cleland | Bank of England

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ESMA Finds Convergence Opportunities For Pre-Trade Controls

The European Securities and Markets Authority (ESMA), the EU’s financial markets regulator and supervisor, recently concluded a common supervisory action (CSA), implemented together with National Competent Authorities (NCA’s) on pre-trade controls under the Markets in Financial Instruments Directive II (MiFID II).   The CSA was launched with the goal of gathering further detailed insights on how investment firms are using pre trade controls across the European Union. The results highlighted that most investment firms have integrated pre-trade controls in their trading activity and in their risk management framework. Nevertheless, it appears that practices related to the implementation and governance are often divergent and not always robust.     Next steps ESMA will further analyse the results gathered and publish guidance, including clarifications and best practices, in the coming months. The objective of such guidance will be to foster common practices among EU firms in the implementation and governance of pre-trade controls. 

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· Actio recta non erit, nisi recta fuerit voluntas ·