As we bid farewell to 2024, we are left with many questions about the dawn of 2025, a year that promises to be a game-changer. We already have key milestones within the ever-fluid EMEA regulatory landscape, including DORA and implementing the Mifid II and Mifir review. We will likely witness further regulatory divergence between the UK and the EU. Still, all parties must act swiftly to address the macro-level challenges affecting primary market listings and the lack of investment in the EMEA region. It is imperative that action is taken on all fronts. 

We should finally see, on a grander scale, AI usage moving from an over-used buzzword bingo to a reality. The pursuit of innovation will persist, with new entrants needing to demonstrate credible and distinctive credentials in a highly competitive and demanding environment, where only those that offer something unique will ultimately endure.

As the industry moves towards a consolidated tape and the looming T+1 deadline, established players will likely continue positioning themselves to expand their market share or protect their existing trading, data, and technology businesses. This is set against a backdrop of rising industry costs, which will inevitably face heightened scrutiny.  Liquidity sweet spots like retail, blocks, bilateral and VWAP crossing will again dominate many liquidity discussions. The bilateral debate will likely persist, and we can expect engaging discussions from industry participants and regulators. 

Furthermore, the ‘Trump effect’ looms on the horizon; this could exacerbate market volatility in the year ahead, a reality that will soon become apparent. In 2025, we must challenge existing workflows and the status quo to innovate and compete globally. We all have a role to play in establishing the EMEA ecosystem as a model of excellence for the global trading community next year and beyond.

Steve Walsh, director of product and solutions, Duco 

This has been one of the most consequential years for financial market regulation in a decade. New compliance requirements have reshaped frameworks in Europe and across the globe. The two most important regulations were the Emir refit at the end of April and the US transition to a T+1 settlement cycle. Both regulations aim to enhance transparency and resilience. 

The Emir refit’s primary motivation was to improve data quality and transparency in the European derivative markets with mandatory data reconciliation requirements and obligations to report material issues to national competent authorities (NCAs). While the transition was largely successful, regulators next year will need to address lingering issues around data accuracy and integrity on data reported to trade repositories. 

Meanwhile in America, T+1 has created operational difficulties, highlighting data quality and transformation issues as well as poor processes and a lack of automation throughout. Resolving these issues will be relevant in Europe as well, as T+1 is expected to reach both the EU and the UK by the end of 2027. European firms need to start preparing while learning from their US peers.

Vikesh Patel, global head of clearing, and president, Cboe Clear Europe 

In 2025, we anticipate renewed regulatory efforts to promote more resilient, efficient and integrated pan-European financial infrastructures. Striking the right balance between fostering growth and innovation on one hand and maintaining regulatory oversight and financial stability on the other will be essential for advancing the region’s capital markets and we look forward to Emir 3.0 helping bring this to life. Whilst we anticipate that talk of top-down consolidation for Europe’s post-trade infrastructure is likely to persist, we will continue to advocate for strengthening the existing competitive framework, particularly in cash equities through mandating true clearing interoperability for all major exchanges.

We remain dedicated to fostering a stronger and more resilient European market by continually driving innovation and equipping participants with the tools they need to drive a more efficient use of their capital, ultimately contributing to long-term growth and stability across the region.

Matt Smith, chief executive officer, SteelEye  

Following several years marked by significant fines for record-keeping breaches related to encrypted messaging apps, we expect to see a broadening focus in 2025. E-comms will remain a regulatory focus, but so too will areas such as voice surveillance. 

Voice surveillance currently represents a big gap in many firms’ communications surveillance programmes due to ambiguous regulatory rules. However, it is likely regulators will clarify expectations around voice surveillance in 2025, and financial firms should prepare for this. 

Currently, regulatory rules do not specify how voice data should be monitored which has resulted in many financial institutions simply carrying out manual reviews of a sample of voice calls, leaving a considerable gap for missed risks.  With advancements in transcription and analytics technology, voice surveillance will move from being an overlooked channel to a critical component of risk management frameworks in 2025. 

Simon Gallagher, chief executive officer, Euronext London 

In 2025, the realities of increased competition from the US for capital and liquidity will be a wake-up call for Europe. On both sides of the channel, policy makers will accelerate measures to bridge the gap between the region’s vast, untapped household savings and its equity markets.

As part of this wider effort, Europe will need stronger and simpler market structures. Euronext will play its full role, making material contributions to simplifying Europe’s post-trade complexity, harmonising its fragmented ETF markets and leveraging our new clearing capability to unlock value for clients. In addition, following our recent push for a single, unified European prospectus, we will continue to proactively propose ‘bottom-up’ solutions to simplify European markets.

Under strong political leadership, I am optimistic that the region will be able to catch up with the US in funding innovation and infrastructure and in creating greater wealth for its citizens. 

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The partnership will see Societe Generale use Duco’s platform to automate reconciliation processes across all business areas to improve efficiency compared to legacy systems and spreadsheet-based practices.

Duco’s application programming interface (API) will also provide Societe Generale’s capital markets clients with external reconciliation services, adding value to the investment bank’s trade execution and clearing businesses.

“Innovation and digital transformation are core to Societe Generale’s strategy, both internally and for our clients,” said Estelle Letribot, global  head of reconciliation post-trade at Societe Generale. “By working with Duco, we have an opportunity to reinvent our operations, introducing agility, automation and machine learning in a function that has traditionally proved very expensive and time consuming.”

Earlier this year, Duco opened three new offices in Singapore, Wroclaw and Edinburgh following several years of growth in its reconciliation model by global financial institutions. The company also announced a $28 million funding round in January this year led by Insight Venture Partners, NEX Group and Eight Road Ventures.

Duco said at the time the funds would be used to expand its global footprint, including the launch of its Singapore office, and to increase its headcount in Europe and the US.

“The advantages of SaaS and self-service solutions in the reconciliation space are clear and we are glad that Societe Generale shares our vision,” Christian Nentwich, CEO of Duco, added about the partnership with Societe Generale.

“With machine learning and cloud-based delivery models now ready for prime time, the industry is rapidly going through a major transformation towards agile services like Duco that mutualise cost and remove unnecessary manual work.”

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CME Group is to make Duco Technologies’ data control and reconciliation services available to CME member firms in January 2017. 

Duco’s services will allow CME members to “simplify processes around fee structures without investing in IT resources or infrastructure,” CME Group said. 

‘Duco Cube’ will also align CME Group member firms’ back-office systems with CME’s exchange fee pricing tools.

Chief commercial officer at CME Group, Bryan Durkin, explained Duco’s tools will “reduce manual work, drive efficiency and ensure accuracy between parties.”

Chief executive officer at Duco, Christian Nentwich, added that data control has become one of the most critical areas for all futures commission merchants (FCM), regulators, clients and global exchanges.

“Working with CME Group during the last six months has shown how our agile, self-service tool can be quickly adopted by both the CME Group data environment and its members’ back office systems,” he said.

The launch follows a six-month trial period with a number of FCMs, which CME and Duco said was successful. 

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ICAP’s investment arm Euclid has been very busy over the last year acquiring emerging FinTech companies, ahead of the group’s rebrand into NEX Group.

Following news this week that ICAP has acquired regulatory reporting company Abide Financial, Euclid has now made a total seven major investments in FinTech companies.

Its portfolio includes Duco, a data control platform - OpenGamma, a risk analytics firm - AcadiaSoft, an industry collaboration to automate collateral management - Cloud9 Technologies, a cloud-based communication provider - and Digital Asset Holdings, a developer of blockchain technology.

Cloud9 Technologies very recently secured $30 million in funding from the likes of JP Morgan, Barclays and ICAP.

Richard Kerschner, chief corporate development Officer of ICAP’s post trade, risk and information services division, explained that Cloud9’s growth since its launch in 2014 “has paralleled the industry’s adoption of cloud technology.”

ICAP plans to adopt Cloud9 Technologies in areas like workflow, compliance and advanced analytics.

Earlier this month, ICAP also became one of several companies to invest $13.3 million in derivatives risk analytics firm, OpenGamma.

Jenny Knott, CEO of ICAP’s post-trade risk and information division said the investment reflects the company’s belief that “the derivatives markets are embracing innovative solutions to address capital and operational challenges.”

It was announced in May this year that ICAP will trade as NEX Group immediately following the completion of the sale of its global hybrid voice broking business to Tullett Prebon.

The deal is expected to complete before the end of 2016 and the new group will focus entirely on electronic markets and post-trade business.

ICAP explained it will be well placed to meet changing customer requirements and better positioned to enter new market segments and innovate.

Commenting on the rebrand at the time it was announced, Michael Spencer, CEO of ICAP, said: “NEX Group will be a fast moving, entrepreneurial pure electronic and post trade leader, well positioned for growth.

“We wanted a name to truly reflect this and which was truly global. NEX Group plc does this. I am very excited about our new name and very excited about the future.”

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