Perspectives & Key Themes from Market Participants

Recently, SIFMA hosted our Annual Meeting. Here we gained insights into top-of-mind topics for market participants from across the financial services industry, including:

• Setting the Scene: Based on our conference survey results, for general macro events respondents ranked Economics – U.S. debt level and geopolitical – Middle East as areas of highest concern. As to industry topics, respondents were most concerned about cyberattacks and artificial intelligence regulation.
• Capital Markets Outlook: The U.S. leads the world with strong capital markets and a strong banking system. As money put into investing lifts economies, governments should transform savers into investors. Investors also have opportunities to put their money to work in private markets and are blending private and public market investments.
• Wealth Management Outlook: A key theme is the great wealth transfer, with $84T expected to change hands over the next two decades. Another theme is the increasing longevity of Americans and the importance of preparing for longer retirements. The U.S. is on the cusp of a retirement crisis – and no one is talking about it.
• Economic Landscape: The consumer is still spending, and the economy has not slowed. Panelists do not see recession drivers in play. The job market is balanced. Inflation has come down. Does the Fed need to cut more? While the data can be debated, the Fed needs to normalize monetary policy in general.
• Regulatory Update: CFTC: AI, operational resiliency, Treasury clearing, Basel III Endgame. Dallas Fed: back to neutral (interest rate, balance sheet). SEC: equity market structure, Reg ATS, PDA, Treasury clearing. Treasury: issuance procedures, market structure changes, data additions, and Treasury clearing.
• Treasury Market Structure: Treasury clearing comes at a time when operations teams have already been working through a lot of regulatory changes. Electronification: UST 59%, IG corporates 50%.

 

Author

Katie Kolchin, CFA
Managing Director, Head of Research

Related Resources

• Event

  SIFMA Annual Meeting

• Video

  SIFMA Annual On Demand

• Resource

  Treasury Clearing Resource Center

• Resource

  SEC Rulemaking Tracker