While we are six months into the new world of the COVID-19 pandemic, and three months since western markets took a substantial hit, the time has come to pause and review how the ‘machinery’ of financial markets has fared. In this ten-minute read, Capco’s David Feltes gives financial market infrastructure (FMI) sector a ‘letter grade’, marks areas for improvement, and what lessons can be learned for the future.

Key findings: 

• The financial markets global infrastructure has largely performed successfully and has managed the spike in volatility and volumes well. This can largely be credited to the global reforms put in place following the events of 2008.
• Regulatory authority’s globally will be reviewing events carefully and factor in actual problems observed to inform future regulatory driven resilience reforms.
• A spotlight has been shone on the need for firms that operate in this space to become more automated, efficient and data driven. This was an existing trend but one which will now be further accelerated.