In May ISLA welcomed over 90 securities lending and financing professionals for an afternoon of economic outlooks, regulatory updates, industry insights and informal networking, for our third annual ISLA London Briefing.
Kindly hosted by Lloyds Banking Group, the afternoon session provided our attendees, including institutional investors and banks, with a deep dive into the practical implications of the UK’s T+1 transition roadmap, the evolution and adoption of digital assets and technologies, as well as the latest regulatory outlooks.
Key takeaways:
- The New Macro Reality: Our opening session addressed the recent “negative energy shock” and its reverberations across the global economy. While recent data showed a temporary dip in headline inflation, structural pressures, emerging from geopolitical friction and fuel costs mean inflation is set to remain sticky. Alongside this, central bank balance sheet policies, fiscal sustainability risks, and their collective, tightening impact on market liquidity, highlighted the need for agility in decision making for the year ahead.
- A ‘Smarter’ Regulatory Landscape: In a fascinating fireside chat with the FCA, we explored how it’s not just market participants that should be considering how new technologies can help deliver results, regulators are also adopting AI, machine learning and automation to improve authorisations and supervision. A ‘smarter regulator’ is better equipped to find the right balance between supporting competitiveness, while protecting our markets.
- Navigating a Broad Market & Regulatory Inflection Point: Our state of the market panel discussed the operational and regulatory forces reshaping the UK ecosystem. The panel discussed the potential impacts of regulatory divergence, including the BoE’s proposals on mandatory clearing and mandatory haircuts across fixed income and equities.
- T+1 as a Catalyst for Structural Change: Transitioning to T+1 settlement remains a primary focal point for 2026. The panel explored how compressed settlement cycles are demanding an operational overhaul for trade and funding workflows. Firms were encouraged to take a ‘root and branch’ approach to identifying impacts as every stage of their operations.
- The New Financial Plumbing: Moving well beyond the proof-of-concept phase, our digital panel dived into the institutionalisation of real-world assets. While tokenised assets sit at ~$25bn today against a $150tn global bond market, estimates suggest growth to $2tn-$10tn by 2030. The conversation highlighted how the UK is driving forward with the digitally native Gilt pilot (DIGIT) making it the first G7 nation to explore sovereign debt on the blockchain. To truly scale, however, the industry must solve the cash leg in a “multi-money landscape” and address core enablers like interoperability.
Following the session, delegates joined for a structured networking session, providing the opportunity for guests to connect, and build new networks which are fundamental to the future of our industry.
Many of the topics discussed during the briefing will be covered in more detail at our upcoming 33rd Securities Finance & Collateral Management Conference in Lisbon between 15-18 June.
