Trade Associations Tout Digitization of Financial Markets

ISDA and several other industry group associations (the "Associations") expressed their joint commitment to moving financial markets toward a "digital future."

In a letter addressed to the Financial Stability Board, IOSCO and the Basel Committee on Banking Supervision, the Associations emphasized the benefits of new technology. The Associations stated that moving towards a digital future will result in (i) standardized risk management processes and the introduction of "real-time regulatory oversight," and (ii) more efficient operational processes in order to provide better customer service and reduce costs for both businesses and consumers. Furthermore, the Associations noted, the COVID-19 pandemic has placed even greater focus on (i) "how trading and operations should function," and (ii) ways in which firms can digitize and automate their own internal operations.