At FIA’s IDX conference in London on 16 June, senior leaders from exchanges, clearinghouses and the banking sector came together to discuss how Europe can strengthen the competitiveness of its derivatives markets.
The panel, moderated by former MEP Baroness Kay Swinburne, now an industry partner advisor at 7Ridge, featured Gaspard Bonin, deputy global head of derivatives execution and clearing at BNP Paribas; Robbert Booij, chief executive of Eurex; Simon Gallagher, chief executive of Euronext London and member of the managing board of Euronext N.V.; Corentine Poilvet-Clédière, chief executive of LCH SA; and Chris Rhodes, president of ICE Futures Europe.
The panel focused on artificial intelligence, tokenisation and extended trading hours with speakers clear that new technology only matters if it solves real market problems.
Several panellists noted that clients increasingly expect financial market infrastructures to take a more active role in guiding innovation. Rather than chasing trends, firms are focusing more closely on where new technologies add value and where to concentrate resources.
Poilvet-Clédière pointed to AI as a clear example. While many applications focus on automation and efficiency, she argued that the greater opportunity lies in improving decision-making. Financial markets are not short of data – “we have way too much data” – but they are short of judgment. The competitive edge will come from the ability to analyse large, constantly evolving datasets and identify early signals, whether in liquidity conditions, operational stress or unexpected correlations.
In this context, AI brings data closer to decision-making, while accountability remains with humans, potentially improving both the quality and speed of decisions.
Bonin echoed the importance of AI and highlighted how quickly the technology is evolving in practice. What began as experimentation with large language models has moved rapidly into more structured deployment, with firms setting clearer targets for cost savings and new revenue.
The pace of change between 2025 and 2026, he said, has been striking. At the same time, he pointed to emerging challenges, including cybersecurity risks and rising costs, with firms focusing more closely on selecting the right models for specific use cases and managing infrastructure efficiently.
Tokenisation
Tokenisation was another key theme, often discussed in the context of making settlement faster and more efficient. While reducing delays is a clear benefit, panellists pushed back on the idea that it could diminish the role of market infrastructure.
Poilvet-Clédière argued that today’s T+2 settlement cycle masks much of the complexity and fragmentation in the system. Because transactions are settled two days after execution, firms have time to manage operational frictions in the background. As settlement moves closer to real time, that buffer disappears.
This would increase the need for more sophisticated liquidity management and real-time risk controls. Rather than reducing the importance of central counterparties, faster settlement could reinforce their role, making high‑quality risk management infrastructure even more critical.
Booij took a similarly incremental view, pointing to efforts to improve collateral mobility rather than overhaul the system entirely. Eurex, for example, has been developing digital collateral solutions in partnership with HQLAx, using distributed ledger technology to allow firms to mobilise collateral more efficiently.
In practice, this enables market participants to meet margin requirements without physically moving securities between custodians, improving speed, flexibility and access to collateral. More broadly, it reflects an effort to address long‑standing inefficiencies across fragmented custody networks, where transfers can be operationally complex and time‑consuming.
Booij noted that this transition is likely to be gradual, with traditional and digital systems operating alongside each other for some time. Initiatives such as HQLAx aim to enhance existing processes rather than replace them entirely.
Bonin, however, struck a more cautious note on DLT, arguing that despite years of development, real‑world adoption remains limited. Costs, fragmentation and unresolved questions around settlement assets continue to weigh on progress, particularly compared with the much faster evolution seen in AI.
24/7 trading
The prospect of 24/7 trading prompted a more cautious response. While the technology to extend trading hours is largely in place, panellists stressed that the wider ecosystem — including clearinghouses, liquidity and payments — must be able to support it before markets move to round‑the‑clock activity.
Booij noted that Eurex is already close to supporting near round‑the‑clock trading, but overnight volumes remain relatively low. He also pointed to the practical implications for market participants, particularly clearing members, who would face additional pressure around margin payments and liquidity management if markets operated continuously.
Poilvet-Clédière reinforced this point, arguing that longer trading hours do not automatically improve markets. The priority should be maintaining quality, including liquidity depth, price reliability and resilience to shocks, across the entire ecosystem.
“I would take four hours with actual high‑quality markets rather than 24/7 of fragility,” she said.
Rhodes added that while many markets already operate close to 24 hours during the week, further expansion should remain customer-led. Innovation should focus on improving the overall value proposition, including more efficient collateral management, rather than simply increasing access.
Beyond infrastructure, the panel also explored product innovation, including the development of contracts linked to economic indicators. Rhodes highlighted growing interest in these products among institutional investors as tools for managing macro exposures, while emphasising the need to ensure that underlying markets are relevant and liquid.
At the same time, Europe’s competitiveness challenge extends beyond new technologies. Euronext’s Gallagher pointed to longstanding structural inefficiencies, particularly in post-trade, where fragmentation across central securities depositories continues to create complexity and cost. Simplifying this landscape could significantly enhance Europe’s attractiveness to global investors.
The common thread was pragmatism. AI is advancing quickly and offers clear opportunities, while tokenisation and digital infrastructure are evolving more gradually. At the same time, the push towards extended trading hours highlights the need to balance ambition with the practical realities of liquidity, clearing and risk management.
For Europe, the challenge is not simply adopting new technologies, but integrating them in ways that strengthen market quality, reduce fragmentation and meet the needs of end users, then panellists said.
