Deutsche Bank & FT survey: blockchain, regulation, emerging markets are key issues driving capital markets

posted over 1 year ago
Financial regulation, new technologies such as blockchain and a revival of emerging markets are key issues driving financial markets, according to a recent survey conducted by Deutsche Bank and FT Remark, the research arm of the Financial Times, among 200 financial market participants.

"These three themes are fundamentally redefining the securities services landscape and the knock-on effects will impact the business models of many capital markets participants," said Satvinder Singh, Head of Global Securities Services and Head of GTB EMEA ex Germany.

According to the survey, these three themes have caused the vast majority of respondents to partially or completely reshape their operating models (96%), buying behavior (95%) and capital/fund allocations (98%) over the past two years.

Blockchain will radically change the market for securities services. A staggering majority (87%) believe that this technology may completely change the settlement model for securities.

As a consequence, securities clearing and settlement will become more efficient while costs are expected to decrease substantially. Almost two-thirds (62%) expect the introduction of blockchain to produce substantial savings ranging from 11%-25%.

Almost half (48%) argue that it will help the industry cope with the risk of system failure and market disruption. Even though this technology is at an early stage, 75% see this technology being widely used within the next three to six years.
Tags: blockchain, opinion