This paper highlights the benefits of global operating approaches which banks use to deliver operations and technology services, irrespective of whether they are headquartered in the EU or elsewhere. A global approach allows banks to deliver efficiency, resilience, regulatory, service and cost benefits to their clients and the financial markets across the diverse geographic locations in which they operate. 

However, there is a risk that emerging EU and global policy could require banks to replicate operations and technology services within specific locations or restrict their use of intragroup arrangements and third-party outsourcing. Other recent events, such as the COVID-19 pandemic, have also heightened the attention of policymakers on operating approaches and the resilience of capital markets.

Any future drive towards the localisation of operations and technology services would significantly challenge banks to serve the clients and markets in which they operate. This outcome would also run contrary to broader policy objectives (such as the EU Capital Markets Union) which aims to establish more robust, liquid, and sustainable markets that benefit clients and investors regardless of their location.

It will be essential that any future policy, in the EU and globally, does not inadvertently impact the development of resilient, secure, and efficient operations and technology services in capital markets. 

Through interviews with members of the AFME Technology and Operations Committee (TOC) and supported by subject matter expertise from Capco, this paper discusses banks’ use of global approaches for providing operations and technology services, covering:

• An overview of banks global operating approaches;
• Use-cases and benefits for operations and technology services; and
• The impact of emerging policy and localisation.

The paper concludes with a call to policymakers to recognise the benefits of global operating approaches to ensure that any future legislation does not inadvertently impact a banks clients or the development of resilient, innovative, and efficient operations and technology in capital markets.

Download the paper here.

Contact Tej Patel, David Turmaine, Andrew Harvey or David Ostojitsch, to find out more about the benefits of a global approach for banks to operate in capital markets.