What Next for UK Capital Markets? | UK Finance Regulatory Roadmap Series IV

2 min read

FullCircl commentary:
What Next for UK Capital Markets?

As UK Finance brings back its popular Regulatory Roadmap webinar series, we joined live to bring you all the highlights on the key topics and issues impacting UK B2B financial institutions. 

Read on as we dig into their webinar, 'What Next for UK Capital Markets?'

What next for UK Capital Markets, and what role will technology play in the evolution?

It’s an exciting time for UK Capital Markets.

The UK is home to some of the oldest and most developed financial markets in the world, and we have a unique opportunity post-Brexit to improve these markets, securing their long-term future prominence and global competitiveness.

On 9th November 2022, UK Finance hosted a panel of experts from the FCA, London Stock Exchange, investment banking, and fintech to discuss regulatory reform and rejuvenation, the deeper purpose of capital markets, and future challenges and opportunities.

Keen to hear more about the intersection between the evolution of capital markets and the digital revolution, here’s what we uncovered about the positive impact technology will play as we as ask the question - ‘what next for capital markets’?

Evolution, not revolution

UK capital markets already have all the ingredients for success. There is huge momentum and appetite for policy reform to make sure that not only are primary and wholesale markets working well, but also how they need to evolve to further strengthen the UK’s position both domestically and globally.

There is encouraging progress being made following a range of initiatives such as Lord Hill’s Listings Review, the Wholesale Markets Review, the Primary Markets Effectiveness Project, and the Financial Services and Markets Bill. We can expect a phased and multi-level approach to change and reform over the next few years.

There will be lots for banks to grapple with, so how can technology help?

Embracing innovation

As one panelist pointed out, when you investigate the pipes and plumbing of how markets work, there are lots of opportunities for digital innovation.

Whilst delivering increased certainty of execution and reducing cost were two of the primary motivators of digital disruption highlighted by the panel, there are many other areas in which automation, data, and agility can ensure that UK capital markets are fit for the future. The panel highlighted:

  • Improving the research environment,
  • Improving corporate governance procedures,
  • Improving audit standards,
  • Maintaining transparency,
  • Cutting out the middlemen,
  • Cost efficiency,
  • Quicker access to markets,
  • Communication.

I would add to that list:

  • Rising to the challenges and opportunities of increasing regulation,
  • Evolving to meet client expectations,
  • Meeting head on the issue of intensifying competition,
  • Reducing inefficiency,
  • Detecting and investigating financial crime,
  • Staying at the forefront of the ESG agenda.

What is clear is that as UK capital markets evolve, banks need to engage with advances being made in technology and data science to address the challenges and opportunities presented by the current pace of evolution if they are to innovate, retain, and grow the prominence of UK capital markets in the years ahead.

How can FullCircl help?

We’ve only touched on a few of the key points here, but we created FullCircl to solve the big challenges we see on the horizon for the regulated industry sectors we serve. In helping our customers do better business, faster we provide:

We can help you get ahead of the new regulatory landscape. Contact a member of our team today to find out how we are helping our customers do better business, faster.

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