ISLA: What does the future hold?
20 June 2025 Spain
Image: Steven Lafferty
Fast forward to 2030, what can we expect? That was the question posed to Wednesday鈥檚 鈥楢n Evolving Playbook: The Future of 糖心vlog Financing鈥� panel by moderator Harpreet Bains, ISLA board member, MD 鈥� global head of Trading Services Digital and Agency 糖心vlog Finance Product at J.P. Morgan.
Lined up to answer the question were: Alessandro Cozzani, ISLA Board vice chair, head of Equity Funding at Bank of America; Joseph Gillingwater, SVP, global head of Fixed Income 糖心vlog Finance Trading at Northern Trust; Stuart Heath, director, Derivatives Products and Markets at Eurex; Romuald Orange, co-head of GSF Sales and Structuring at Natixis; and David Raccat, co-founder and chief revenue officer of Wematch.live.
The discussion opened with long-term projections, as panellists highlighted accelerated settlement, product-agnostic trading models, and the widespread use of AI as just some areas to consider. While there is still uncertainty around how AI will be adopted, several speakers saw potential in its ability to measure risk, allocate liquidity, and optimise scarce resources. Aptly, one speaker emphasised a classic truism: 鈥�2030 will come around pretty quickly.鈥�
One panel member described the need for a 鈥渄igitally clear鈥� future, in which standardised, tech-enabled workflows help scale the business, secure processes, and improve control over counterparty risk. But achieving this vision will require significant buy side adoption of digital tools, something panellists noted remains a challenge.
The question of structural convergence was also asked. The traditional silos between stock loan, repo, synthetics, and derivatives are beginning to blur, they agreed, suggesting that convergence across asset classes is inevitable. 鈥淲e鈥檙e already seeing the whole market becoming more intertwined,鈥� one panellist said. But while technology is seen as the enabler, the regulatory landscape remains a major influence on the pace of change. As one speaker observed: 鈥淥nly two things make things change 鈥� regulations or P&L.鈥�
There was agreement that the future will favour a handful of dominant platforms able to concentrate liquidity. Scale, liquidity, and the ability to solve key problems 鈥� such as counterparty risk 鈥� were seen as critical to long-term success. Niche players may still play a role, one speaker argued, but are likely to be acquired or integrated by larger platforms.
Despite the appeal of automation, several panellists noted a growing tension between the desire for standardised, intelligent execution, and the increasing complexity of client demands. 鈥淲e battle with that daily,鈥� one said, emphasising: 鈥淭here鈥檚 no one-size-fits-all solution.鈥� AI may eventually support smarter pricing models and dynamic workflows, but for now, the panel noted, most firms still operate in highly bespoke environments.
Many of the pain points identified during the session revolved around post-trade processes. Speakers pointed to the sheer volume of systems, manual touchpoints, and inefficiencies that occur after a trade is executed. Lifecycle management was also highlighted as an area ready for improvement, with some suggesting that full end-to-end transformation will be needed.
Regional nuance also remains a key consideration. While regulatory convergence is improving, client expectations and operational requirements still differ across geographies. One panellist set Asia as the example, where in the US and Europe there is often a tendency to treat the region as a whole, rather than as unique, individual countries with their own market environments.
Synthetic products, meanwhile, have gained ground, particularly in regions where regulatory or operational considerations make physical securities lending less efficient. None of the panellists, however, believed that synthetics would fully replace physical trades. 鈥淚 don鈥檛 think we鈥檙e at the point where the whole stock lending industry could turn synthetic tomorrow,鈥� one speaker pointed out.
Asked what the biggest prize would be if the industry succeeds in harmonising and integrating its processes, speakers were united: better service for clients, improved liquidity provision, and greater profitability. But they also acknowledged the road ahead will not be easy.
As a closing question, the panel was asked to identify the most critical strategic step needed to drive progress. Client pricing, internal technology builds, improved risk-weighted asset usage, and the construction of 鈥渟mart bridges鈥� between systems were suggested.
With 2030 fast approaching, the time to act, according to the panel, is now.
Lined up to answer the question were: Alessandro Cozzani, ISLA Board vice chair, head of Equity Funding at Bank of America; Joseph Gillingwater, SVP, global head of Fixed Income 糖心vlog Finance Trading at Northern Trust; Stuart Heath, director, Derivatives Products and Markets at Eurex; Romuald Orange, co-head of GSF Sales and Structuring at Natixis; and David Raccat, co-founder and chief revenue officer of Wematch.live.
The discussion opened with long-term projections, as panellists highlighted accelerated settlement, product-agnostic trading models, and the widespread use of AI as just some areas to consider. While there is still uncertainty around how AI will be adopted, several speakers saw potential in its ability to measure risk, allocate liquidity, and optimise scarce resources. Aptly, one speaker emphasised a classic truism: 鈥�2030 will come around pretty quickly.鈥�
One panel member described the need for a 鈥渄igitally clear鈥� future, in which standardised, tech-enabled workflows help scale the business, secure processes, and improve control over counterparty risk. But achieving this vision will require significant buy side adoption of digital tools, something panellists noted remains a challenge.
The question of structural convergence was also asked. The traditional silos between stock loan, repo, synthetics, and derivatives are beginning to blur, they agreed, suggesting that convergence across asset classes is inevitable. 鈥淲e鈥檙e already seeing the whole market becoming more intertwined,鈥� one panellist said. But while technology is seen as the enabler, the regulatory landscape remains a major influence on the pace of change. As one speaker observed: 鈥淥nly two things make things change 鈥� regulations or P&L.鈥�
There was agreement that the future will favour a handful of dominant platforms able to concentrate liquidity. Scale, liquidity, and the ability to solve key problems 鈥� such as counterparty risk 鈥� were seen as critical to long-term success. Niche players may still play a role, one speaker argued, but are likely to be acquired or integrated by larger platforms.
Despite the appeal of automation, several panellists noted a growing tension between the desire for standardised, intelligent execution, and the increasing complexity of client demands. 鈥淲e battle with that daily,鈥� one said, emphasising: 鈥淭here鈥檚 no one-size-fits-all solution.鈥� AI may eventually support smarter pricing models and dynamic workflows, but for now, the panel noted, most firms still operate in highly bespoke environments.
Many of the pain points identified during the session revolved around post-trade processes. Speakers pointed to the sheer volume of systems, manual touchpoints, and inefficiencies that occur after a trade is executed. Lifecycle management was also highlighted as an area ready for improvement, with some suggesting that full end-to-end transformation will be needed.
Regional nuance also remains a key consideration. While regulatory convergence is improving, client expectations and operational requirements still differ across geographies. One panellist set Asia as the example, where in the US and Europe there is often a tendency to treat the region as a whole, rather than as unique, individual countries with their own market environments.
Synthetic products, meanwhile, have gained ground, particularly in regions where regulatory or operational considerations make physical securities lending less efficient. None of the panellists, however, believed that synthetics would fully replace physical trades. 鈥淚 don鈥檛 think we鈥檙e at the point where the whole stock lending industry could turn synthetic tomorrow,鈥� one speaker pointed out.
Asked what the biggest prize would be if the industry succeeds in harmonising and integrating its processes, speakers were united: better service for clients, improved liquidity provision, and greater profitability. But they also acknowledged the road ahead will not be easy.
As a closing question, the panel was asked to identify the most critical strategic step needed to drive progress. Client pricing, internal technology builds, improved risk-weighted asset usage, and the construction of 鈥渟mart bridges鈥� between systems were suggested.
With 2030 fast approaching, the time to act, according to the panel, is now.
NO FEE, NO RISK
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to 糖心vlog Finance Times
100% ON RETURNS If you invest in only one securities finance news source this year, make sure it is your free subscription to 糖心vlog Finance Times
