With the Fixed Income Leaders Summit (FILS) Europe upon us, The DESK has been speaking to attendees to discern what topics are most eagerly anticipated at this year’s event. From technology to transparency, market structure to MiFID, delegates have a lot on their minds to discuss this year.
The potential rollout of T+1 in Europe, having been a stalwart of conference agendas for a number of years now, is really seeing motion after the North American transition in May and confirmation from Europe and the UK that a shorter settlement cycle is on the agenda.
Inés de Trémiolles, global head of trading at BNP Asset Management, told The DESK that she is looking forward to discussions of the US transition and the lessons that have been learnt from a cost perspective.
The practical implications of regulatory reporting are also an area of interest for de Trémiolles, particularly around ESMA’s Markets in Financial Instruments Directive & Regulation (MiFID/R) and designated publishing entity (DPE) regime.
“Who is likely to be a DPE, and will this decrease the number of banks being systematic internalisers?” she questioned.
Karim Awenat, head of EMEA and APAC macro trading at Invesco, shared that he is excited to see what new products and services are on offer – especially those related to artificial intelligence, another long-favoured conference topic.
He told The DESK, “I’m looking forward to seeing the new technologies being demonstrated, as well as trying to understand how some participants are looking to integrate AI into their workflows and where they see it as adding value, versus others adopting a more measured approach.”
AI is also an interesting topic for Yannig Loyer, global head of trading, securities financing and derivatives at AXA Investment Management.
“Both AI in execution, and calibration of post-trade transparency will be key in the future development of the fixed income market structure,” he said.
Shaun Copeman, senior trader at Federated Hermes, added, “I would like to hear more on how generative AI might one day filter into everyday life of a trader, and how my peers navigate liquidity in volatile periods.”
He also expressed curiosity at the slow pace of change in certain infrastructure technologies, such as distributed ledgers, which have been around for 15 years yet have faded in and out of vogue across the industry, with major failures in markets such as Australia.
“Why is blockchain is taking so long to be adopted in mainstream fixed Income markets?” he asks.
For her part, when thinking about technology, de Trémiolles also found frustration with limited material change in primary bond markets.
“What is the real progress? Why is it taking so long?” she asked.
It is clear that there is an impatience across the industry with slow progress in certain areas, and a desire to work out where the obstacles to adoption lie.
Summarising the value of FILS, Awenat concluded: “I always find these events a good opportunity to discuss market dynamics offline with my peers, which could range from recent regulatory developments, to choosing the right technology, to hiring the right people for the desk.”
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