DTCC outlines priorities for financial industry in 2025

The Depository Trust & Clearing Corporation (DTCC) has disclosed its priorities and predictions for the financial industry in 2025, with a focus on technological advancements, risk management, and regulatory changes.

Frank La Salla, President, CEO, and Director of DTCC, highlighted the ongoing uncertainty in the macroeconomic and geopolitical environment. He expressed optimism about the company's role in leading initiatives to mitigate risks, enhance resilience, and strengthen market structures. "While the macroeconomic and geopolitical environment will remain uncertain in 2025, I'm optimistic about our industry's future and the opportunity for DTCC to lead on critical initiatives that mitigate risk, enhance resilience and strengthen market structure," La Salla stated. He added that a focus on technology and innovation would remain paramount, with the firm continuing to integrate digitisation, cloud, and AI into its operations.

Lynn Bishop, Chief Information Officer, emphasised the importance of upgrading and modernising technology platforms. She stated, "We continue to focus on upgrading and modernising our technology to provide clients and the industry with innovative services and capabilities they need today and in the future." Bishop also pointed out the necessity of strengthening resilience against evolving cyber threats and confirmed ongoing investments in AI to enhance efficiency and productivity.

Nadine Chakar, Managing Director and Global Head of DTCC Digital Assets, reflected on the progress made in 2024 in terms of digital asset adoption and regulation. She noted, "2024 was a pivotal year for digital assets, and we're seeing strong momentum toward adoption." Chakar pointed to the establishment of the DTCC Digital Launchpad as a significant step towards fostering industry acceptance and adoption of tokenisation solutions.

Timothy Cuddihy, Managing Director and Group Chief Risk Officer, addressed the evolving threat landscape and the need for robust risk management practices. "As the threat landscape evolves and the nature of risk takes on new forms in the coming year, DTCC will continue to focus on strong risk management practices and robust operational resilience," Cuddihy stated. He advocated for a holistic approach to risk management, embracing real-time threat detection and advanced automation.

Brian Steele, Managing Director and President of Clearing & Securities Services, outlined the priority of expanding U.S. Treasury clearing in 2025. "The expansion of U.S. Treasury clearing is a huge priority for us in 2025," Steele explained. He discussed the strategic focus on capital and liquidity efficiencies, and readiness for supporting global accelerated settlement efforts.

Michele Hillery, Managing Director and Head of Repository & Derivatives Services, highlighted the significant regulatory changes that shaped the derivatives markets in 2024. "2024 was a significant year in which the derivatives markets were shaped by substantial regulatory reporting updates," she remarked. Hillery underlined the importance of early preparation and collaboration to adapt to ongoing regulatory changes in 2025.

Laura Klimpel, Managing Director and Head of DTCC's Fixed Income and Financing Solutions, discussed record breaking volumes in fixed income clearing. "Throughout the year, FICC remained focused on providing the most efficient and resilient clearing services for the industry," Klimpel stated. She also addressed preparations for future regulatory deadlines and the importance of continued product development.

Tim Lind, Managing Director of DTCC Data Services, acknowledged the data-centric transformation in asset servicing during 2024. He noted the role of AI and cloud-based data marketplaces in transforming the data supply chain, enhancing the integrity and insight into financial dynamics.

Val Wotton, Managing Director and General Manager of Institutional Trade Processing, praised the implementation of T+1 settlement cycles in the US. "2024 marked the successful implementation of T+1 in the US, which delivered substantial risk mitigation and operational and cost efficiency benefits to market participants," Wotton conveyed. He also discussed the ongoing preparations for accelerated settlement cycles in the UK and Europe, seen as opportunities for operational automation and efficiency.