5th Theme of SIBOS: Importance of Neutrality
To appeal to the widest range of potential users, a post trade system needs to build a community with minimal barriers to joining. Neutrality is integral to its core logicin both ownership and participants, meaning that users are unconstrained in their choice of counterparties. For example, a hedge fund that wants multiple prime brokers should have the ability to connect to all of them and notbe restricted to one. Similarly, as regulations change and more types of trade are required to be cleared or reported, users will prefer systems that are interoperable with all clearing and reporting houses.
The same rationale needs to be applied to those who trade globally. Firms who trade in more than one region face afurther layer of complexity, with more nuances in the waythat trades are matched and differences in regulation. A well-designed and flexible system should meet all of their global post-trading requirements, by adapting quickly and easily to the variations in each market. This allows international firms to use a single system, simplifying their operations and controlling their costs.