Securities market participants should take greater collective and individual responsibility if they are to make the market more resilient and less susceptible to outages.

This is one of the conclusions from the most recent liquidity landscape report produced by buy-side trading network Liquidnet.

The report picks out three trends that it states will dominate the market and its regulators in 2024 – the shortened settlement cycle, the impact of technology and market resilience.

On the latter issue, the report states that the two outages suffered by the London Stock Exchange will have increased the urgency among regulators.

Furthermore, the increased reliance on third party firms, cloud technology and automation will have added to individual firms’ collective responsibility.

“The industry is only as strong as its weakest link,” states the report. “2024 will not only represent greater regulatory scrutiny of compliance, risks, and controls as well as technology interoperability, but individual responsibility in making the eco-system function optimally.”

Liquidnet also warns market participants to expect more regulatory attention in terms of their data activity. “With all regulators hiring data analytics, scientists, and synthetic data experts to support the shift towards being data-led, the industry can expect greater scrutiny in how data is used, what is reported and how.”

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