Given the record growth in our industry, which regions and asset classes will lead in 2025 and beyond?
We expect to see further innovation and increased competition across a number of asset classes into 2025. For example, through our partnership with FMX, LCH will begin clearing US Treasury futures, bringing a compelling market solution that includes portfolio margining through SwapClear. We also expect to see continued growth in credit default swaps clearing as we expand our service to offer greater choice to US members and customers.
Due to the changing economics of FX trading through uncleared margin requirements and increased capital, we expect to see continued increases in clearing activity which reduces costs through netting and reduces the risk weighting relative to bilateral trades.
Have regulators struck the appropriate balance between addressing risk and promoting innovation?
Regulators have done a lot to make markets safer and more resilient, particularly through CCP clearing, risk management and collateral workflows. These measures have been critical in enhancing stability and protecting markets during times of stress. That said, achieving the right balance remains a work in progress.
Some regulations, especially around capital requirements, have led to increased costs and additional complexity. In response to these changes, we have been working closely with our customers to bring innovative solutions that help them to fully optimise their over-the-counter portfolios and reduce the consumption of scarce financial resources.
And thinking about innovation, which technology advances offer the most opportunity looking forward?
Innovation in artificial intelligence, automation and digitisation are offering some of the most exciting technological opportunities to transform our industry. AI-driven tools are transforming decision-making and risk management, helping firms act more efficiently with better insights.
LSEG’s focus on robust data systems and the responsible use of AI ensures these AI models are not just smart but accurate, compliant and actionable. On top of that, automation, particularly in collateral workflows, is driving down costs and simplifying processes across the trade lifecycle. Together, these advances are helping the industry become faster, smarter and more connected.
What is the biggest challenge ahead for your exchange or for the industry as a whole?
Regulatory fragmentation and geopolitical uncertainty continue to pose challenges for the industry. Divergent clearing mandates, capital requirements and equivalency rules create complexity for firms trying to operate globally. Add to that market volatility, geopolitical risks and liquidity constraints and the challenge becomes
even greater.
The key will be to balance these pressures, ensuring markets remain accessible,
efficient and trusted by participants. For LSEG, that means continuing to invest in infrastructure, technology and strong partnerships to deliver value in an increasingly complex environment.
Given the rapid pace of new products introduced in 2024, which three excite you most?
Several exciting developments are underway, and three stand out for me. The introduction of SOFR futures clearing through our partnership with FMX marks a significant milestone in enhancing efficiency and competition.
Looking ahead – the launch of US Treasury futures on FMX in 2025, combined with portfolio margining via SwapClear, will bring innovation, competition and choice to interest rate risk management in the US.
Additionally, we see growing demand for greater capital and operational efficiencies in managing uncleared portfolios. Through Post Trade Solutions, LSEG Markets aims to deliver many of the benefits of clearing to uncleared trades, ensuring consistent processing across asset classes and efficiency of financial resources.
Following the announcement of the US Treasury clearing mandate for cash and repo transactions, there has been increased market engagement in direct, sponsored and guaranteed models for UK and European cash and repo markets, driving demand at LCH. And we remain customer-focused, working with participants to identify opportunities and add value.
What more can the industry do to improve diversity in financial markets?
To improve diversity, the industry must focus on creating inclusive recruitment practices and offering mentoring programmes that support underrepresented talent. Transparency is vital and sharing diversity metrics openly can help hold organisations accountable for progress.
Equally important is fostering workplace cultures where diverse perspectives are encouraged and valued, as this drives innovation and stronger decision-making. A commitment to these efforts will ensure the industry reflects the diversity of the global community it serves.
What was the most interesting film or play you saw in 2024?
A standout play I saw this year was The Buddha of Suburbia at the Royal Shakespeare Company in Stratford-upon-Avon. It was an unforgettable production, and I would highly recommend it. More recently, I also watched MJ the Musical at the Prince Edward Theatre in London with my wife and kids during our annual Christmas theatre trip. The performance, especially by the lead actor, was absolutely breathtaking – a true feast for the senses. Both productions are exceptional and come highly recommended.
What was the best book you read in 2024?
The best book I read this year was Fake History by Otto English. It’s a thought-provoking read that challenges more ‘orthodox’ historical narratives. Just as Otto English challenges readers to question accepted stories, in financial markets we must also challenge assumptions, adapt quickly to evolving realities, and constantly be thinking beyond and outside of what we are traditionally trained to think.
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