Technology Is the Major Enabler to Manage Risks in Financial Markets

Trading, clearing and settlement of financial instruments are not possible any more without technology. However technology alone is not sufficient to create a robust financial market infrastructure that meets the expectations of the regulators and the market participants to manage risks and ensure low operational costs. In this article insight is given how the public sector initiated and is overseeing two technology intensive programs -CLS and GLEIF- to mitigate the risks of market participants in financial markets and how the regulators are supported in their role to avoid and mitigate systemic risks in their economy. In both cases, public sector objectives can only be realized if public authorities and market participants cooperate in a concerted action.