Gil Guillaumey at Adenza finds an upside amid the securities industry's liquidity challenges in this edition of the FTF Focus podcast series.
Securities firms searching for liquidity in capital markets are facing many challenges and factors such as high interest and inflation rates. But this situation represents a huge opportunity for firms that have liquidity and are benefitting from better management of lending and hedging decisions.
So says Gil Guillaumey, head of strategy for Capital Market Solutions at Adenza, in this latest edition of the FTF Focus podcast series.
Some firms are finding that market conditions are making it challenging to find liquidity. But those with liquidity may find themselves with an advantage.
“Market conditions can also be a huge opportunity for institutions that are long on cash or securities and we see a very active repo market that is boosted by more electronification and CCP pushes for more clearing,” Guillaumey says. “Treasury departments will increasingly pay more and more attention to the way they invest and the risk they take. So, controlling the lending and hedging decisions is something we see them increasingly doing.”
Adenza provides end-to-end trading, treasury, risk management, and regulatory compliance solutions. Adenza serves global, central, and regional banks, broker-dealers, insurers, asset managers, pension funds, hedge funds, stock exchanges and clearing houses, securities services providers, and corporates. Most recently, Adenza’s Cloud Services won Service Provider of the Year for 2023 via the FTF News Technology Innovation Awards competition.
For this podcast, Guillaumey discussed:
- The changing liquidity landscape;
- The new costs associated with this new liquidity landscape;
- How treasury groups cope with the lack of liquidity caused by high-interest rates and high inflation;
- Central banking and other regulatory changes
- How the new liquidity landscape & T+1 are affecting the electronic repo markets