Citi Securities Services Evolution 2025

Securities Services Evolution 2025 | 15 Inside the firm: the impact of post-trade changes extend well What do the most significant post-trade changes look like inside an organization in 2025? (Figure 3) Not surprisingly, T+1 dominates the operating agenda across all departments – extending well beyond operations and settlements. That 44% of front office teams and 47% of treasury see T+1 as the most significant area of post-trade change in their own businesses this year highlights the deep effects of this change on trading, foreign exchange, cash and treasury management . T+1 is about trading and balance sheets first and foremost, whilst operations and IT play an enabling role. For C-level managers, the challenge is straddling so many change-related themes at once. Without the luxury of being able to focus deeply on any one theme, today’s senior managers’ attention is spread equally on everything from T+1 to asset servicing. What not to focus on? With resilience crucial in order to protect the firm from financial, reputational, and regulatory harm, C-level managers’ ability to divide their attention and oversee every activity is clearly under pressure. Our survey also underlines the critical, broad- reaching role that compliance teams have in driving change. Above other business functions, compliance is the most significantly impacted by changes in digital assets of any function in our 2025 survey, whilst they are also keenly aware of the impact of asset servicing automation. To avoid impeding innovation, compliance managers now need to be increasingly conversant in issues and solutions across the entire trade cycle, so that they can support digital asset adoption or corporate actions automation in 2025. By contrast, operations and IT teams appear to be feeling less impact fromdigital assets and asset servicing this year. Whether this is simply because their focus on T+1 (at 44% and 47% respectively) leaves no space for other major priorities; or whether this is because digital assets and asset servicing automation have yet to enter Figure 3: Where are firms’ functions feeling the impact of all the market changes? Question: What do you consider to be the most significant changes in the post-trade space today – based on impact to your business? Please rank accordingly with 1 being the most impactful. Expressedas: %of respondents in each function citing each theme as the top change. the mainstreamof operations and platforms, there is evidently a gap between business intent (fromC-level managers and the front office) and their execution (Figure 3). Given these differences in focus, howmuch support and implementation should we realistically expect in 2025 and beyond? Acceleratedsettlements (toT+1) Adoption of digital assets Automation of asset servicing Settlement efficiency (CSDR) Increased shareholder participation and governance Replacement of FMI legacy technology platforms Resiliency (incl. DORA) Mandatory fixed income clearing Adoption of Generative AI Technology/Innovation Compliance/Risk/Legal Post Trade, Middle Office and Operations Finance/Treasury Front Office/Trading/ Portfolio Management C-level Management 47% 13% 13% 7% 7% 7% 7% 29% 27% 21% 7% 15% 44% 14% 14% 14% 3% 7% 47% 25% 10% 14% 3% 44% 17% 11% 14% 10% 22% 20% 22% 11% 6% 22% 5%