Jun 17, 2022
In our latest MarketVoice Podcast, Walt Lukken, President and CEO talks with former FIA Chairman Jerome Kemp about the movement towards real-time settlement in the derivatives industry.
Kemp, the former global head of futures, clearing, and FX prime brokerage at Citi and currently president of post-trade solutions provider Baton Systems, noted that the global cleared derivatives markets continue to prove resilient and efficient on the whole. However, he notes that over the last few decades the industry has largely focused on the execution side, without properly addressing delays, risks and some bottlenecks when it comes to settlement.
"You can execute in essentially real time, and when it comes to settling a trade or moving margin you're looking at at least 24 hours," Kemp said. "The implications of that are massive."