SIU: A light at the end of the tunnel
29 April 2025
As the EU鈥檚 Savings and Investments Union strategy is beginning to take shape, Daniel Tison examines its impact on the securities finance sector
Image: stock.adobe.com/Lush Diaries
The current geopolitical uncertainty is a driver for policymakers to prioritise economic stability and resilience, and to strengthen financial markets, according to Farrah Mahmood, director of regulatory and government affairs at the International Securities Lending Association (ISLA). As a result of the recent events, a new strategy has emerged in the European Union to make the market more robust in the face of external shocks.
In December 2024, the European Commission (EC) shifted its focus from the Capital Markets Union (CMU) to the Savings and Investment Union (SIU), marked by the appointment of Maria Lu铆s Albuquerque as the European Commissioner for Financial Services and the SIU. Building on progress made under the CMU and the parallel efforts to develop the Banking Union, the SIU offers to take a holistic approach to encompass the entire EU financial system, including capital markets and the banking sector.
The transition from the CMU to the SIU was influenced by recommendations from the Draghi report, published in September 2024, which highlighted the need for a comprehensive approach to enhance Europe's competitiveness. The report emphasised the importance of mobilising private savings for long-term investments to address challenges like climate change and technological advancements.
The new strategy was officially communicated on 19 March 2025, when the EC published its plans to channel savings into investments. By financing defence, technology, and green initiatives, the SIU aims to boost market competitiveness and increase Europe鈥檚 resilience.
In the announcement, President of the EC, Ursula von der Leyen, stated that the new strategy represents a 鈥渄ouble win鈥.
鈥淗ouseholds will have more and safer opportunities to invest in capital markets and increase their wealth,鈥 she said. 鈥淎t the same time, businesses will have easier access to capital to innovate, grow, and create good jobs in Europe.鈥
Mahmood confirms that much of ISLA鈥檚 2024 manifesto is fully aligned with the SIU objectives.
She says: 鈥淭he emphasis on reducing reliance on external funding and deepening EU capital markets is partly a response to current geopolitical tensions, and ISLA can use this opportunity to advocate for policies that enhance market liquidity and efficiency, such as securities financing.鈥
Over the coming months, the association aims to engage with the EC, EU policymakers, and other stakeholders to ensure the important role of securities lending in the European market鈥檚 future developments is recognised.
The Managed Funds Association (MFA) and the Alternative Investment Management Association (AIMA) both welcome the proposal.
Rob Hailey, head of EMEA government affairs at MFA, comments: 鈥淩educing fragmentation, boosting liquidity, and enhancing the securitisation framework for investors will attract investment and strengthen EU capital markets.鈥
Jack Inglis, CEO of AIMA, adds: "[The] strategy announcement sets a high bar, and policymakers should maintain this ambition as they develop the SIU鈥檚 key components. A crucial early step will be the upcoming proposal on securitisation reform, which is essential for strengthening capital market investment and supporting lending to businesses."
For the Deutsche B枚rse Group, the SIU has become the top priority, which the firm addressed in its recent policy paper 'Towards an EU Savings and Investments Union'.
In the foreword, Stephan Leithner, CEO of Deutsche B枚rse, says: 鈥淎n extensive list of game-changing ideas is on the table that can make a real difference and truly move the needle 鈥 notably by putting citizens and investors stronger into the focus to foster participation, with mobilising private capital as a key leverage for success.鈥
Over the past few weeks, EU leaders have met to discuss how to implement this strategy in practice. On 16 April, the EC launched a consultation seeking feedback from market participants on possible legislative and non-legislative measures to target financial market infrastructure, asset management operations, and common supervision.
Building a risk-reward culture
Among other objectives, the SIU is particularly focused on encouraging retail participation in capital markets to create a more dynamic and efficient financial ecosystem, utilising the role of securities lending in enhancing market liquidity.
As of March 2025, approximately 鈧10 trillion of EU retail savings are currently held as bank deposits, according to Eurostat, generating a relatively low return compared to investments in capital market instruments. The SIU, therefore, aims to provide a wider range of efficient investment and financing opportunities for EU citizens and businesses.
鈥淕reater trust in financial products is an important precondition for citizens to participate in capital markets, implying the need for easy, simple, and low-cost access to investment opportunities,鈥 the document reads.
To further incentivise retail participation in capital markets, the EC proposes to extend access to saving and investment accounts across the EU. This includes reduced tax and fees, as well as an 鈥渁ttractive鈥 digital interface.
In its Eurobarometer survey from July 2023, the EC found that only 18 per cent of EU citizens possess a high level of financial literacy, with women, young people, and older adults being the least educated in this sector.
Therefore, raising awareness about investment products and associated risks is a central theme of the SIU, with securities lending seen as an area requiring enhanced education. According to the EC, higher levels of financial literacy will be essential in developing a retail investment culture within the EU.
Sam Riley, CEO of Clearstream Securities Services, believes that increased financial literacy will see more investments through different channels, including cryptoassets.
鈥淎s financial literacy increases in Europe, we will see more investments through different channels,鈥 he says. 鈥淲e鈥檙e also seeing a generational change, including the use of technology and how we invest as individuals.鈥
As part of the SIU, the EC has also committed to reducing inefficiencies stemming from fragmentation as well as the removal of barriers to cross-border operations. This includes a review of taxation, post-trade processing, and collateral legislation.
According to Leithner, the European capital market remains underdeveloped, and a steady decline is strongly observable, especially in equities.
In the above-mentioned policy paper, he notes: 鈥淭he EU has the most fragmented market among developed countries. The market capitalisation of listed companies is only about 50 per cent of GDP. And the EU is only home to around 10 per cent of global IPOs.鈥
Financial instruments are traded on 116 regulated markets and 148 multilateral trading facilities in the EU. Moreover, there are currently 26 central securities depositories (CSDs) and 14 CCPs authorised to provide settlement and clearing services.
For financial services alone, the International Monetary Fund (IMF) estimates that internal barriers to the single market are equivalent to a tariff of more than 100 per cent, implying a significant cost to the EU economy.
To address these barriers to more integrated trading and post-trade infrastructure, the EC is preparing a package of legislative proposals, including rules on CSDs, financial collateral, settlement, and the trading market infrastructure. Furthermore, the Commission will take action to remove differences in national taxation procedures creating administrative burden and barriers to cross-border investment.
This aligns with ISLA鈥檚 policy proposal in its manifesto to promote clear, unambiguous, and forward-looking legislation, including a harmonised EU-wide definition of beneficial ownership, taking into account widely accepted international standards, such as the Organisation for Economic Co-operation and Development (OECD) guidelines, and ensure consistency of interpretation between member states to reduce the operational and regulatory burden for member firms conducting cross-border activity.
On that note, Mahmood adds: 鈥淭he SIU aims to create a more integrated and efficient financial ecosystem. This is a fundamental benefit for securities finance, as it relies on and contributes to market liquidity. A deeper market means more available securities for lending and borrowing, potentially increasing activity and efficiency.
鈥淏y channelling more savings and investments into the EU economy, the SIU can boost economic growth and innovation. This can lead to increased issuance of securities and therefore greater demand for securities finance to facilitate trading, hedging, and settlement.鈥
To Nandini Sukumar, CEO of the World Federation of Exchanges, the SIU presents an opportunity to strengthen European capital markets by encouraging equity investment and a risk-reward culture.
She says: 鈥淢arket fragmentation is a barrier to the development of deeper and more integrated capital markets, but rather than looking at forcing consolidation in any part of the market, the Commission should consider a careful balance between different types of trading venues 鈥 including regulated markets, multilateral trading facilities, and systematic internalisers.
鈥淭his should ensure fair competition, market integrity, and investor protection. Any regulatory changes in this area should be guided by a commitment to maintaining high standards of transparency, resilience, and investor trust.鈥
Cutting the red tape
Examining potential hurdles to the widespread adoption of the SIU, Riley classifies them into two main categories 鈥 legislative and technical.
鈥淵ou鈥檝e got things like securities law, tax law, and solvability law, which are harder to change because they are based at a country level, not a European level,鈥 explains Riley.
Mahmood does not expect any major regulatory overhauls, as the SIU is more focused on creating a supportive ecosystem and addressing specific barriers rather than fundamentally restructuring existing regulations like the Securities Financing Transactions Regulation (SFTR).
鈥淭he emphasis is on improving efficiency and integration within the existing frameworks,鈥 says Mahmood. 鈥淭he SIU's push for greater harmonisation and standardisation could, however, lead to some adjustments in how existing regulations are applied across different member states 鈥 for example, the SIU's Market Infrastructure Package could bring changes to clearing, settlement, and other post-trade processes, which are critical for securities finance.鈥
However, she acknowledges that differences in legal and regulatory frameworks, as well as market practices, can create operational challenges for securities finance, hindering cross-border activity. Additionally, tax barriers to cross-border investment can also impede the efficient flow of securities and act as a significant barrier to entry for future investment.
鈥淲hile the SIU aims for harmonisation, the existing regulatory landscape is complex, with several pieces of legislation differing between jurisdictions,鈥 says Mahmood. 鈥淓nsuring that new initiatives do not add to this complexity, and that they are implemented consistently, will be a challenge.鈥
ISLA鈥檚 plan is to promote policy proposals around the move to T+1, where the association requested an exclusion of securities financing transactions, other developments to the Central Securities Depositaries Regulation (CSDR) settlement discipline regime, the uptake of the Common Domain Model to reduce the regulatory burden and cost for firms and regulators, as well as a level of standardisation across markets for lifecycle events.
In contrast, technical challenges are easier to accomplish, according to Riley. As an example, he mentions Clearstream's lending and collateral platform, bringing together assets held on the ICSD and CSD, as well as in commercial and central bank money, which has removed some of the barriers.
Leithner writes that a flourishing private data economy is a key ingredient for successful capital markets, with data being the backbone to any comprehensive investment decision.
Mahmood argues that disparities in technological infrastructure across member states can create operational inefficiencies.
鈥淭he need for digitisation and interoperability is crucial to remain competitive on a global stage and act as a single trading bloc versus its peers,鈥 she exclaims.
On behalf of the MFA, Hailey points out that critical elements are missing in the SIU strategy. In a letter submitted to the EC shortly after the announcement, the association recommends the Commission to implement targeted securitisation reforms to meet its economic growth and capital market integration goals.
鈥淎 right-sized securitisation framework is essential for building stronger European capital markets and achieving the goals of the EU Savings and Investments Union,鈥 says Jillien Flores, chief advocacy officer at the MFA. 鈥淭argeted reforms will enhance market participation, help banks manage their risks and free up capital, improve capital formation, and help connect global capital with European businesses and investors, including pensions.鈥
MFA鈥檚 primary recommendations include narrowing the definition of securitisation within the US framework, as well as removing duplicative and burdensome due diligence requirements under the EU Securitisation Regulation.
Mahmood adds that the prevailing geopolitical uncertainty has led to a discernible shift towards increased national focus within EU member states, which is impeding the momentum for broader, EU-wide policy development.
鈥淟oss of member state sovereignty, versus EU cooperation to achieve these goals, has been discussed extensively at a political level,鈥 she says. 鈥淭o successfully advance the aims of the SIU, enhanced cooperation among EU member states is going to be crucial. However, there has already been opposition from certain political groups around unnecessarily exposing savings to risk and a lack of public trust.鈥
A sense of urgency in 鈥榬eglobalisation鈥
Riley notes that there is a sense of urgency in the Commission鈥檚 proposal: 鈥淭here are clear timelines which are within a year, and that is not normally something that we would see from the European Commission, which we should read as positive, and that will require a quick turnaround by market participants.鈥
In the second quarter of 2025, the EC will set up a dedicated channel for all market participants to report on encountered barriers within the single market and will act on accelerating their removal.
Consequently, a package of legislative proposals 鈥 including rules on CSDs, collateral, and settlement 鈥 will be introduced in Q4 2025. This aims to modernise the legislative framework and ensure a better quality of execution on EU trading venues, while reducing administrative burden.
Meanwhile, ISLA recommends that market participants prepare for cross-border activity by ensuring their systems and processes can handle these transactions efficiently. While no major overhauls are expected, market participants should also stay informed about changes to existing regulations and any new initiatives that may impact securities finance.
Additionally, the emphasis on digitisation and market infrastructure improvements will require market participants to invest in technology and adapt to new platforms and standards, according to ISLA. Increased focus on transparency and reporting may also lead to evolving data requirements, so market participants should ensure they have robust data management systems.
Looking ahead, Mahmood anticipates: 鈥淕eopolitical risks can accelerate the push for strategic autonomy, where the EU seeks to reduce its dependence on other regions for critical resources, including financial services.
鈥淭he heightened awareness of potential risks has certainly created a greater willingness to take decisive action, with a sense of urgency, and as a result, ISLA is ready to play a role in shaping the narrative for the years ahead.鈥
Along with an additional sense of urgency due to the current tariff situation under the new US administration, Riley also sees an opportunity in the SIU, especially following the recent completion of the European Central Bank鈥檚 exploratory work on distributed ledger technology (DLT) and tokenisation.
He concludes: 鈥淯nder the deglobalisation that鈥檚 currently happening through this tariff uncertainty, there is at least a bit of light at the end of the tunnel in terms of how we 鈥榬eglobalise鈥 the securities finance industry.鈥
In December 2024, the European Commission (EC) shifted its focus from the Capital Markets Union (CMU) to the Savings and Investment Union (SIU), marked by the appointment of Maria Lu铆s Albuquerque as the European Commissioner for Financial Services and the SIU. Building on progress made under the CMU and the parallel efforts to develop the Banking Union, the SIU offers to take a holistic approach to encompass the entire EU financial system, including capital markets and the banking sector.
The transition from the CMU to the SIU was influenced by recommendations from the Draghi report, published in September 2024, which highlighted the need for a comprehensive approach to enhance Europe's competitiveness. The report emphasised the importance of mobilising private savings for long-term investments to address challenges like climate change and technological advancements.
The new strategy was officially communicated on 19 March 2025, when the EC published its plans to channel savings into investments. By financing defence, technology, and green initiatives, the SIU aims to boost market competitiveness and increase Europe鈥檚 resilience.
In the announcement, President of the EC, Ursula von der Leyen, stated that the new strategy represents a 鈥渄ouble win鈥.
鈥淗ouseholds will have more and safer opportunities to invest in capital markets and increase their wealth,鈥 she said. 鈥淎t the same time, businesses will have easier access to capital to innovate, grow, and create good jobs in Europe.鈥
Mahmood confirms that much of ISLA鈥檚 2024 manifesto is fully aligned with the SIU objectives.
She says: 鈥淭he emphasis on reducing reliance on external funding and deepening EU capital markets is partly a response to current geopolitical tensions, and ISLA can use this opportunity to advocate for policies that enhance market liquidity and efficiency, such as securities financing.鈥
Over the coming months, the association aims to engage with the EC, EU policymakers, and other stakeholders to ensure the important role of securities lending in the European market鈥檚 future developments is recognised.
The Managed Funds Association (MFA) and the Alternative Investment Management Association (AIMA) both welcome the proposal.
Rob Hailey, head of EMEA government affairs at MFA, comments: 鈥淩educing fragmentation, boosting liquidity, and enhancing the securitisation framework for investors will attract investment and strengthen EU capital markets.鈥
Jack Inglis, CEO of AIMA, adds: "[The] strategy announcement sets a high bar, and policymakers should maintain this ambition as they develop the SIU鈥檚 key components. A crucial early step will be the upcoming proposal on securitisation reform, which is essential for strengthening capital market investment and supporting lending to businesses."
For the Deutsche B枚rse Group, the SIU has become the top priority, which the firm addressed in its recent policy paper 'Towards an EU Savings and Investments Union'.
In the foreword, Stephan Leithner, CEO of Deutsche B枚rse, says: 鈥淎n extensive list of game-changing ideas is on the table that can make a real difference and truly move the needle 鈥 notably by putting citizens and investors stronger into the focus to foster participation, with mobilising private capital as a key leverage for success.鈥
Over the past few weeks, EU leaders have met to discuss how to implement this strategy in practice. On 16 April, the EC launched a consultation seeking feedback from market participants on possible legislative and non-legislative measures to target financial market infrastructure, asset management operations, and common supervision.
Building a risk-reward culture
Among other objectives, the SIU is particularly focused on encouraging retail participation in capital markets to create a more dynamic and efficient financial ecosystem, utilising the role of securities lending in enhancing market liquidity.
As of March 2025, approximately 鈧10 trillion of EU retail savings are currently held as bank deposits, according to Eurostat, generating a relatively low return compared to investments in capital market instruments. The SIU, therefore, aims to provide a wider range of efficient investment and financing opportunities for EU citizens and businesses.
鈥淕reater trust in financial products is an important precondition for citizens to participate in capital markets, implying the need for easy, simple, and low-cost access to investment opportunities,鈥 the document reads.
To further incentivise retail participation in capital markets, the EC proposes to extend access to saving and investment accounts across the EU. This includes reduced tax and fees, as well as an 鈥渁ttractive鈥 digital interface.
In its Eurobarometer survey from July 2023, the EC found that only 18 per cent of EU citizens possess a high level of financial literacy, with women, young people, and older adults being the least educated in this sector.
Therefore, raising awareness about investment products and associated risks is a central theme of the SIU, with securities lending seen as an area requiring enhanced education. According to the EC, higher levels of financial literacy will be essential in developing a retail investment culture within the EU.
Sam Riley, CEO of Clearstream Securities Services, believes that increased financial literacy will see more investments through different channels, including cryptoassets.
鈥淎s financial literacy increases in Europe, we will see more investments through different channels,鈥 he says. 鈥淲e鈥檙e also seeing a generational change, including the use of technology and how we invest as individuals.鈥
As part of the SIU, the EC has also committed to reducing inefficiencies stemming from fragmentation as well as the removal of barriers to cross-border operations. This includes a review of taxation, post-trade processing, and collateral legislation.
According to Leithner, the European capital market remains underdeveloped, and a steady decline is strongly observable, especially in equities.
In the above-mentioned policy paper, he notes: 鈥淭he EU has the most fragmented market among developed countries. The market capitalisation of listed companies is only about 50 per cent of GDP. And the EU is only home to around 10 per cent of global IPOs.鈥
Financial instruments are traded on 116 regulated markets and 148 multilateral trading facilities in the EU. Moreover, there are currently 26 central securities depositories (CSDs) and 14 CCPs authorised to provide settlement and clearing services.
For financial services alone, the International Monetary Fund (IMF) estimates that internal barriers to the single market are equivalent to a tariff of more than 100 per cent, implying a significant cost to the EU economy.
To address these barriers to more integrated trading and post-trade infrastructure, the EC is preparing a package of legislative proposals, including rules on CSDs, financial collateral, settlement, and the trading market infrastructure. Furthermore, the Commission will take action to remove differences in national taxation procedures creating administrative burden and barriers to cross-border investment.
This aligns with ISLA鈥檚 policy proposal in its manifesto to promote clear, unambiguous, and forward-looking legislation, including a harmonised EU-wide definition of beneficial ownership, taking into account widely accepted international standards, such as the Organisation for Economic Co-operation and Development (OECD) guidelines, and ensure consistency of interpretation between member states to reduce the operational and regulatory burden for member firms conducting cross-border activity.
On that note, Mahmood adds: 鈥淭he SIU aims to create a more integrated and efficient financial ecosystem. This is a fundamental benefit for securities finance, as it relies on and contributes to market liquidity. A deeper market means more available securities for lending and borrowing, potentially increasing activity and efficiency.
鈥淏y channelling more savings and investments into the EU economy, the SIU can boost economic growth and innovation. This can lead to increased issuance of securities and therefore greater demand for securities finance to facilitate trading, hedging, and settlement.鈥
To Nandini Sukumar, CEO of the World Federation of Exchanges, the SIU presents an opportunity to strengthen European capital markets by encouraging equity investment and a risk-reward culture.
She says: 鈥淢arket fragmentation is a barrier to the development of deeper and more integrated capital markets, but rather than looking at forcing consolidation in any part of the market, the Commission should consider a careful balance between different types of trading venues 鈥 including regulated markets, multilateral trading facilities, and systematic internalisers.
鈥淭his should ensure fair competition, market integrity, and investor protection. Any regulatory changes in this area should be guided by a commitment to maintaining high standards of transparency, resilience, and investor trust.鈥
Cutting the red tape
Examining potential hurdles to the widespread adoption of the SIU, Riley classifies them into two main categories 鈥 legislative and technical.
鈥淵ou鈥檝e got things like securities law, tax law, and solvability law, which are harder to change because they are based at a country level, not a European level,鈥 explains Riley.
Mahmood does not expect any major regulatory overhauls, as the SIU is more focused on creating a supportive ecosystem and addressing specific barriers rather than fundamentally restructuring existing regulations like the Securities Financing Transactions Regulation (SFTR).
鈥淭he emphasis is on improving efficiency and integration within the existing frameworks,鈥 says Mahmood. 鈥淭he SIU's push for greater harmonisation and standardisation could, however, lead to some adjustments in how existing regulations are applied across different member states 鈥 for example, the SIU's Market Infrastructure Package could bring changes to clearing, settlement, and other post-trade processes, which are critical for securities finance.鈥
However, she acknowledges that differences in legal and regulatory frameworks, as well as market practices, can create operational challenges for securities finance, hindering cross-border activity. Additionally, tax barriers to cross-border investment can also impede the efficient flow of securities and act as a significant barrier to entry for future investment.
鈥淲hile the SIU aims for harmonisation, the existing regulatory landscape is complex, with several pieces of legislation differing between jurisdictions,鈥 says Mahmood. 鈥淓nsuring that new initiatives do not add to this complexity, and that they are implemented consistently, will be a challenge.鈥
ISLA鈥檚 plan is to promote policy proposals around the move to T+1, where the association requested an exclusion of securities financing transactions, other developments to the Central Securities Depositaries Regulation (CSDR) settlement discipline regime, the uptake of the Common Domain Model to reduce the regulatory burden and cost for firms and regulators, as well as a level of standardisation across markets for lifecycle events.
In contrast, technical challenges are easier to accomplish, according to Riley. As an example, he mentions Clearstream's lending and collateral platform, bringing together assets held on the ICSD and CSD, as well as in commercial and central bank money, which has removed some of the barriers.
Leithner writes that a flourishing private data economy is a key ingredient for successful capital markets, with data being the backbone to any comprehensive investment decision.
Mahmood argues that disparities in technological infrastructure across member states can create operational inefficiencies.
鈥淭he need for digitisation and interoperability is crucial to remain competitive on a global stage and act as a single trading bloc versus its peers,鈥 she exclaims.
On behalf of the MFA, Hailey points out that critical elements are missing in the SIU strategy. In a letter submitted to the EC shortly after the announcement, the association recommends the Commission to implement targeted securitisation reforms to meet its economic growth and capital market integration goals.
鈥淎 right-sized securitisation framework is essential for building stronger European capital markets and achieving the goals of the EU Savings and Investments Union,鈥 says Jillien Flores, chief advocacy officer at the MFA. 鈥淭argeted reforms will enhance market participation, help banks manage their risks and free up capital, improve capital formation, and help connect global capital with European businesses and investors, including pensions.鈥
MFA鈥檚 primary recommendations include narrowing the definition of securitisation within the US framework, as well as removing duplicative and burdensome due diligence requirements under the EU Securitisation Regulation.
Mahmood adds that the prevailing geopolitical uncertainty has led to a discernible shift towards increased national focus within EU member states, which is impeding the momentum for broader, EU-wide policy development.
鈥淟oss of member state sovereignty, versus EU cooperation to achieve these goals, has been discussed extensively at a political level,鈥 she says. 鈥淭o successfully advance the aims of the SIU, enhanced cooperation among EU member states is going to be crucial. However, there has already been opposition from certain political groups around unnecessarily exposing savings to risk and a lack of public trust.鈥
A sense of urgency in 鈥榬eglobalisation鈥
Riley notes that there is a sense of urgency in the Commission鈥檚 proposal: 鈥淭here are clear timelines which are within a year, and that is not normally something that we would see from the European Commission, which we should read as positive, and that will require a quick turnaround by market participants.鈥
In the second quarter of 2025, the EC will set up a dedicated channel for all market participants to report on encountered barriers within the single market and will act on accelerating their removal.
Consequently, a package of legislative proposals 鈥 including rules on CSDs, collateral, and settlement 鈥 will be introduced in Q4 2025. This aims to modernise the legislative framework and ensure a better quality of execution on EU trading venues, while reducing administrative burden.
Meanwhile, ISLA recommends that market participants prepare for cross-border activity by ensuring their systems and processes can handle these transactions efficiently. While no major overhauls are expected, market participants should also stay informed about changes to existing regulations and any new initiatives that may impact securities finance.
Additionally, the emphasis on digitisation and market infrastructure improvements will require market participants to invest in technology and adapt to new platforms and standards, according to ISLA. Increased focus on transparency and reporting may also lead to evolving data requirements, so market participants should ensure they have robust data management systems.
Looking ahead, Mahmood anticipates: 鈥淕eopolitical risks can accelerate the push for strategic autonomy, where the EU seeks to reduce its dependence on other regions for critical resources, including financial services.
鈥淭he heightened awareness of potential risks has certainly created a greater willingness to take decisive action, with a sense of urgency, and as a result, ISLA is ready to play a role in shaping the narrative for the years ahead.鈥
Along with an additional sense of urgency due to the current tariff situation under the new US administration, Riley also sees an opportunity in the SIU, especially following the recent completion of the European Central Bank鈥檚 exploratory work on distributed ledger technology (DLT) and tokenisation.
He concludes: 鈥淯nder the deglobalisation that鈥檚 currently happening through this tariff uncertainty, there is at least a bit of light at the end of the tunnel in terms of how we 鈥榬eglobalise鈥 the securities finance industry.鈥
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