In an engaging fireside chat at ISDA’s recent Annual General Meeting, Frank La Salla, President, CEO and Director, DTCC and Scott O’Malia, CEO, ISDA, explored pressing market issues, ranging from the implementation of U.S. Treasury clearing to the promising potential of digital assets and blockchain technology as well as the power of industry collaboration.
Video provided courtesy of ISDA
Treasury Clearing and Liquidity
La Salla spoke about the vital role of U.S. Treasury clearing to freeing up liquidity and capital to market participants responsibly. He discussed the different clearing models available to firms, emphasizing the potential of the agency clearing model in addressing concerns about non-netting trading. He underscored the need for access models that are flexible and cost-effective in the face of distinct client demands and shifting market conditions.
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“There’s no doubt in my mind that over the next several years there’s going to be a greater demand for liquidity and capital because as global economies continue to grow, they’re going to need funds and capital to fuel that growth,” La Salla said. “At DTCC, we’re on a mission to work with the industry on helping to free up more liquidity and capital in a responsible way. And that’s where Treasury clearing comes in to create capital efficiencies, provide extra liquidity to the markets and reduce risk.”
What's in Store
La Salla also provided a glimpse into the future, discussing the powerful combination of tokenization and blockchain technology to move collateral faster. He noted, "If we can tokenize real-world assets, we can mobilize collateral in a much more efficient and less risky way, which will provide value to the global financial markets." La Salla highlighted the crucial role of tokenization will play in strong and resilient financial markets supported by a digital backbone.
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Digital Technologies
The Power of Collaboration
The conversation then turned to the partnership between DTCC and ISDA. O’Malia and La Salla said their organizations are diligently working together to implement regulatory reporting standards, a move that will keep pace with the increasing market complexities. La Salla described this collaboration as “an example of how industry trailblazers are making joint efforts to streamline processes not only for their businesses but also, ultimately, for the global economy.” He further emphasized the need for continued industry coordination as firms adapt to the constant evolution of market complexities.