Henri Bergström, Head of Product Management, CSD Technology, Nasdaq
Henri Bergstrom, head of product management for CSD technology in the Market Technology division at NASDAQ, notes that infrastructural firms themselves will need to make substantial investments.
"Europe is moving towards a single regulation on CSDs with a high level of standardisation and that also takes into account global policies such as those of CPMI/IOSCO and ISO. This, together with T2S, will certainly require CSDs to make some very significant investments in technologies and operations. This could extend to their customers' back-office and sometimes even to the middle-office," Bergstrom said.
Even with standardisation, there will be issues as a result of timing.
"The challenge will be that different CSDs will introduce these changes in different stages. And they will need to find ways to recoup the investments. CSD (Regulation) and T2S themselves will not bring any new revenue streams but will increase the costs. Both of them, however, will provide CSD's and their participants with new opportunities to make the best use of the new structures and technology," Bergstrom said.