To meet the operational and regulatory challenges facing today’s global capital markets, ongoing collaboration is required among industry stakeholders on the development of shared utilities that address commodified noncompetitive needs. These shared industry utilities typically provide some form of network and economy of scale. One example is a central securities depository.
Goals and Objectives
Proceed toward the mutualization of the technical expense of nondifferentiated industry needs through collaboration with other market stakeholders. Consider using a third party to manage the utility product or service to ensure independence and impartiality.
Cloud, data analytics, and blockchain
Use Case Summary
Growing specialization and evolving cost structures within the capital markets are making coopetition among capital markets firms in the creation of shared, nondifferentiated infrastructure increasingly economically attractive. The cost of becoming a digital-first enterprise in prevailing markets is high and supports the mutualization of certain technology expenses.