For the fourth consecutive year, BME has held its Post-Trade Conference at the Madrid Palace, which was attended by more than 200 participants. Under the title "Regulatory and Digital Progress in the Post-Trade Industry," various panels at the event reflected on the key aspects of the sector.
In his opening speech, José Manuel Ortiz, Head of Securities Services at SIX a.i., emphasised that regulatory changes and digitalization will continue to be the two most determining factors for the sector's activity. "The daily challenge is to combine the growing demand for regulatory adaptation with the development of innovative services and products that meet the sector's needs. It is our firm commitment, from our position as an international group with a presence in Switzerland and the European Union," he explained.
As in any post-trade meeting in recent years, the transition to the one-day settlement process (T+1) has been at the center of many conversations in the Conference, which has had Ataulfo Martín de Argenta, Head Sales & Relationship Management Spain at BSS SIX, as master of ceremonies. Giovanni Sabatini, Independent Chair EU T+1 Industry Committee, delivered the special address of the Conference.
Sabatini has explained the importance of coordinated movement with Switzerland, the United Kingdom, and the EU so that the transition to T+1 happens simultaneously in these three areas on October 11, 2027. In his opinion, this transition should be seen as another component of the EU's global strategy to strengthen and make European capital markets more competitive. "Financial institutions must face the impact of the transition to T+1 as a strategic decision, not just a technical issue," he explained.
He also emphasised that the complexity of this transition in the EU is greater than in other areas of the world because it has 27 jurisdictions. Therefore, it is important to have great coordination to ensure that the opinions of all involved parties are considered, with a flexible approach and the willingness to harmonise the framework as much as possible in the EU, Switzerland, and the United Kingdom, based on the understanding that this transition is a collaborative effort involving both the public and private sectors.
Following this, Jesús Sánchez, Head of Settlement Services at SIX, participated in a panel titled T+1, a key milestone for the efficiency and integration of financial markets, alongside speakers from Cecabank, BNP, and Caceis. Among other topics, they discussed the lessons learned from the transition to T+1 in the United States, the initial impact on settlement efficiency, the importance of being close to clients, and the necessary coordination with the entire sector and regulators in the EU, Switzerland, and the United Kingdom.
The other major regulatory challenge for the sector is EMIR 3.0, which was the focus of a panel and a special intervention by Klaus Löeber, Chair of the CCP Supervisory Committee at ESMA, who explained that ESMA's three priorities are to have adequate and harmonised supervision of the very relevant central counterparties, to promote the strength and competitiveness of clearing in European capital markets, and to manage the risks of dependence on countries outside the EU. He also highlighted the resilience of European CCPs during the most tense moments in the markets a few weeks ago. Among the advantages of EMIR 3.0, he added, are greater agility in processes and greater efficiency in communication with relevant sector actors.
He added that ESMA is working to create the conditions for an agile and efficient process in the clearing area, and that they are advancing in the implementation of EMIR 3.0, ensuring a smooth transition through innovative digitization processes.
In the panel, moderated by Rafael Plata, Secretary General of EACH, and featuring Xavier Aguilá, General Manager of BME Clearing, along with representatives from Santander Corporate & Investment Banking and BBVA Corporate & Investment Banking, the role of EMIR 3.0 in reinforcing the security, transparency, and efficiency of EU clearing practises was emphasised.
The panel highlighted that BME Clearing plays a fundamental role in the transition to EMIR 3.0, facilitating its clients' compliance with the active account requirement through a wide range of clearing services, including its IRS solution, which, in addition to the euro, incorporates other key currencies to adapt to the new requirements of the European regulatory framework.
Innovation
But, beyond regulatory changes, digitalization continues to set the pace for the sector. This was emphasised in the panel Development of post-trade through innovation and digital transformation, which included representatives from BBVA, Iberpay, and Adhara. The panel highlighted that, although at first glance some may consider that post-trade (the market's plumbing) and innovation cannot go hand in hand, this is not the case, because without a modern and efficient post-trade process, nothing would work in financial markets. They discussed asset tokenization, smart contracts, and the use of DLT technology, which help streamline processes and provide immediacy.
They also reflected on the initiative led by BME in the Eurosystem's experimentation programme for the settlement of payment transactions using digital tokens issued by the European Central Bank (ECB). A White Paper on this initiative has recently been published, which can be consulted on BME's website.
The last panel before the closing was dedicated to innovation and new products driving the sector. Moderated by Diego Negrín, partner at Deloitte, it featured Paula Fernández, Head of FXS at BME, and Sergio Jiménez, Head of FX & STIR Trading at Bankinter. In it, there has been a particular discussion about the new system for settling foreign exchange transactions in a payment versus payment mode recently launched by BME. The FXS services offer a trading and settlement platform for currencies with payment versus payment integration, eliminating counterparty risks and optimising costs. Additionally, they allow settlement in multiple currencies and flexible dates, improving operational efficiency and financial security. It democratises the FXS business and brings transparency. This service simplifies and allows access to many more players.
Finally, Jesús Benito, Head of Domestic Custody & TR Operations at SIX, closed the Conference by summarising the highlights of the morning and reaffirming the central role of the post-trade sector in the stability, strength, and innovation of financial markets. In his final words, he highlighted the solidity and security of the Spanish capital markets throughout their value chain, as demonstrated by the normality in operations during the blackout on April 28.
You can see the photos of the Conference at this link.
