What are your key predictions for 2025 with respect to the buy-side and digital transformation?
We see a wide range of digital advancements that impact the buy-side, from artificial intelligence to digital asset creation. The ability to adapt and lead will rely on organisations being able to harness a combination of technology and talent in unison. A focus on people, in conjunction with technology, has the possibility to transform workflows, enhance productivity and drive overall growth.
With an undeniable digital transformation upon us, we find a renewed focus on resiliency. This is driven by an overarching business imperative but with increased impetus driven by regulations such as DORA. These regulations emphasise resiliency, prompting businesses to seek solutions that bolster internal operations and ensure the stability of third-party providers. There is increasing scrutiny on outsourcing partners, driven by regulations that prioritise operational resilience and governance.
What do you anticipate will be the main challenges faced by the buy- and sell-side this year?
The main challenge will be to balance opportunity with regulation in a cost-effective manner. As regulations evolve, businesses must adapt to remain competitive and compliant. This requires a delicate balance: they need to capitalise on opportunities in areas like private credit and alternatives while managing regulatory pressures. The increasing complexity of operations may necessitate greater reliance on third-party services, prompting important questions about their reliability and resilience. Addressing these concerns is essential for maintaining operational integrity and seizing opportunity.
To navigate these evolving regulations, companies must constantly evaluate their technology and operational infrastructures. Regulatory frameworks such as DORA focus on operational resilience and third-party oversight, urging businesses to strengthen their systems accordingly. In Asia and EMEA, customers are adapting to stringent requirements and renewed regulatory reviews, such as those seen with European Market Infrastructure Regulation (EMIR) in Europe. As a result, organisations are scrutinising their partnerships more closely, reflecting a growing focus on quality and stability in a complex regulatory landscape.
How do you expect the disparities between UK and EU regulations to change in the coming years?
In recent months, we have seen an unprecedented amount of geopolitical change – this in turn creates a degree of uncertainty in the world of regulatory change. However, even with this backdrop, I anticipate that the UK will continue to make strategic moves to maintain and enhance its global relevance post-Brexit. While this might involve a closer alignment with Europe in some areas, a key priority will be ensuring that the UK remains an attractive hub for issuing securities and facilitating secondary market activities. A prime example of this is the expected transition to a T+1 settlement cycle, which we believe the UK will advance with swiftly. This change promises to be beneficial for the market – we have already witnessed the smooth transition in the US market. We are focusing on helping our clients navigate this shift and the broader move towards shorter settlement cycles globally. This trend is certainly on the radar for both the UK and Europe, and it will continue to be a focus as we look towards 2027.