We work with companies and regulators across the financial market’s ecosystem including stock exchanges and other trading platforms, interdealer brokers, clearinghouses, securities depositories, information providers, data and analytics companies, index providers, technology vendors and financial investors. Our focus is on helping market infrastructure operators, software and tech providers, market participants and financial investors proactively lead market development in this dynamic sector. We can help you address the most pressing issues and promising developments, including:
- Changes in market participants. The continuing shift from active to passive investment strategies is accelerating the use of rules-based algorithmic investing to track indexes or specific asset classes.
- The impact of technology. E-trading is driving an initial shift in revenue pools from OTCs to exchanges, but new entrants will alter the dynamics over time.
- Alternative capital. Multiple private capital platforms have launched, as investors direct more funds to that option; meanwhile, companies are delaying IPOs.
- Market structure and competition. As market participants develop their own alternative trading venues (dark pools/SIs) exchanges are being forced to diversify.
- Regulation. Pressure continues to increase as global regulators push for de-risking and fair and orderly markets, creating opportunities for FMIs that can bring transparency, risk reduction and simplified trade disclosures.
- M&A. Continuing consolidation in the market infrastructure landscape makes formulation of M&A/inorganic growth strategies for all market participants imperative.
In addition to these trends, the advent of digital assets; centralization and integration of services; the increasing use of AI, automation and other technologies; and the potential for innovative new players to disrupt virtually any segment within the financial markets infrastructure (FMI) value chain means that leaders face a daunting array of challenges–and opportunities.
Our global team of partners, experts and advisors works closely with you to assess all these trends, using a “future-back” approach to determine where you need to be several years from now. We combine that with a “today-forward” approach that helps you realize immediate gains as you build toward your ideal future state.
We also have extensive experience in conducting FMI due diligence on behalf of private equity firms, leveraging the deep capabilities we have developed as the leading consulting partner to the private equity industry and its key stakeholders.