Jim Kaye is Executive Director at the FIX Trading Community.
What was the highlight of 2024?
The T+1 settlement cycle change across the US, Canada, and Mexico was undoubtedly a highlight. Despite some concerns leading up to the transition, it went remarkably smoothly, with no significant ongoing issues reported. At our October conference, we posed the question, “How was this achieved?” Two clear answers emerged: early, coordinated action by industry participants and market infrastructure providers, and a strong, consistent approach from regulators, particularly in fixing the implementation date. While this might sound intuitive, even obvious, it doesn’t always work out this way. This achievement demonstrates what can be accomplished with the right focus and direction.
What trends are emerging that may become significant?
For the past couple of years, we’ve been collaborating with the Organization for the Advancement of Structured Information Standards (OASIS) on messaging standards for trading power and energy. By applying financial trading concepts to this sector, we aim to simplify and open up these markets, which could significantly improve energy usage efficiency.
The next frontier is green energy, including carbon emissions and related products. We’re beginning to work with firms, associations, and standards bodies to develop standards for primary issuance and secondary trading in this area. There’s a growing belief that this market has the potential to become both a major investable asset class and a crucial facilitator of the green transition.
What are your expectations for 2025?
There are two key areas our members continue to emphasize that feel poised for significant developments in 2025. One is the tokenization of securities, which has been in the prototype and pilot stages for some time. Members believe 2025 could mark its transition into the mainstream. The other is artificial intelligence, which, despite the surrounding hype, is steadily being adopted across the industry. Rather than focusing on robo-traders, the real impact lies in addressing process inefficiencies and helping people perform better. Improving data quality and implementing responsible adoption practices – such as controls and training – are critical focus areas, both to prevent accidents and to maximise the benefits of these technologies.
