Deutsche Börse’s Jens Hachmeister, the head of issuer services and new digital markets, emphasizes the urgent need for an upgrade in digital asset infrastructure to ensure the future success of Europe’s markets. He highlights the crucial role technology and regulation play in shaping the capital markets, stressing the necessity of integrating both aspects seamlessly to drive efficiency and innovation.

In the evolving landscape of financial markets, the convergence of technology and regulatory frameworks is becoming increasingly vital. While some institutions have embraced Distributed Ledger Technology (DLT) and digital assets, those lagging in defining their strategies risk falling behind. Hachmeister advocates for a comprehensive overhaul of market infrastructure to adapt to the fast-paced changes in the industry.

Historically, market models have evolved towards electronic platforms, introducing tools like open limit order books and electronic clearing houses to streamline processes. However, there remains a gap in fully digitizing the core product of securities. Moving beyond traditional batch processing methods is imperative to meet the demands of modern markets and enhance the efficiency of transactions.

To achieve future success, the focus should be on reducing the temporal gap between issuers and investors by enabling instant issuance, direct distribution, and seamless settlement of securities. This digital transformation necessitates a shift towards a more integrated and digital lifecycle for securities, departing from outdated batch processing systems.

The transformation of capital markets requires a paradigm shift towards a more interconnected and technologically advanced ecosystem. By embracing digitalization and enhancing market infrastructure, financial institutions can unlock new opportunities for growth and innovation. Hachmeister’s call to “Spotify” digital assets infrastructure underscores the importance of adopting a dynamic and flexible approach to meet the evolving needs of Europe’s markets.

In conclusion, the convergence of technology and regulation is pivotal in shaping the future of capital markets. By modernizing digital asset infrastructure and embracing innovation, institutions can future-proof their operations and stay competitive in an ever-changing financial landscape. Hachmeister’s insights serve as a catalyst for driving transformative changes that will propel Europe’s markets towards greater efficiency and sustainability.