Challenges in Equity Markets

Legacy equity markets can only achieve efficiency through radical centralization, and participants still face challenges associated with legacy processes and systems.

These factors combine to make equity issuance relatively expensive, limiting issuers to only the largest companies in any market.

Specific challenges include:

  • Settlement/counterparty risk, requiring costly margins and capitalization of the central counterparty
  • Data siloes between institutions, requiring manual reconciliation across the life cycle of equities
  • Substantial numbers of intermediaries involved in transactions, many required by regulation
  • Aged legacy infrastructure systems in many jurisdictions

How We Help Equity Markets

While most market participants and service providers consider operations and infrastructure in equity markets to be efficient, our solutions:

  • Introduce greater flexibility in clearing and settlement timelines
  • Reduce or eliminate settlement risk
  • Address operational burdens associated with data siloes in post-trade processing

XDEX is uniquely suited to optimize post-trade operations and life-cycle management, by:

  • Synchronizing references and mutualizing workflows across all parties involved in trading, settlement, custody or corporate actions, thereby limiting the need for manual reconciliation.
  • Automating settlement instructions and/or corporate actions processes using smart contracts.
  • Reducing settlement risk and/or settlement time frames or enabling greater flexibility in settlement time frames.