Fix Frankfurt 2025: Technology and Innovation – Connecting the Dots in a Complex Market
The recent Fix Frankfurt event brought together market infrastructure specialists, asset managers, and technology providers to explore the future of trading. The panel tackled some of the most pressing issues in financial markets today: the integration of traditional and digital assets, regulatory shifts, market fragmentation, and the evolution of consolidated data.
Integrating traditional and new asset classes
A central theme of the discussion was the integration of securities with new asset classes such as crypto and blockchain-based instruments.
- From the buy-side perspective, margin pressure is driving diversification: ETFs continue to compress fees, leaving asset managers seeking growth in private markets and alternative assets.
- Younger traders and developers are fueling demand for crypto trading. One panelist shared that a colleague was hired thanks to his 24/7 crypto trading expertise, underscoring how digital-native talent is reshaping the industry.
But the challenges remain significant. Integrating these assets into traditional OMS/EMS infrastructure is complex. As one participant noted:
“Once you’ve got it integrated, the rest is easy everyone will use algorithms. But getting there is the hard part.”
Technology and front-to-back integration
Technology providers stressed the importance of front-to-back integration to manage coexistence between T+2, T+1, and even real-time settlement environments.
- Standards such as FIX and ISO 20022 play a critical role in ensuring interoperability.
- Unlike the U.S., where a single CSD, CCP, and currency make T+1 transition smoother, Europe faces the complexity of 14 currencies, 29 CSDs, and 18 CCPs.
As one panelist put it:
“It’s like a kids’ football game everyone chasing the ball. To win, you need front, middle, and back office working together.”
The Role of Consolidated Data
The introduction of a Consolidated Tape Provider (CTP) in Europe was another hot topic. While intended to improve transparency and best execution, panelists voiced concerns:
- Monopoly risk: With only one provider per asset class, a “super-monopolist” could emerge.
- Data quality: Without harmonization, aggregated data may carry significant errors.
- Use cases: For the buy side, real-time, high-quality data is crucial for automation and Transaction Cost Analysis (TCA). Faster feedback loops help both humans and algorithms learn and improve execution.
As one trader highlighted:
“Immediate feedback is the key. If you get fast, consistent data, you can reinforce good behavior whether for machines or humans.”
Market fragmentation and 24-hour trading
The panel also addressed the fragmentation of German regional exchanges and the EU’s broader ambition to reduce complexity in trading and post-trading infrastructure. Proposals such as hub-and-spoke models, where all trades funnel through a lead exchange, were met with skepticism. Panelists argued that competition among venues benefits investors and that liquidity fragmentation can be managed through technology and standards.
The conversation extended to 24-hour trading models, particularly attractive for retail investors. While institutional players favor concentrated liquidity during core hours, panelists agreed that extended sessions could serve retail demand without disrupting the broader market.
Looking Ahead
The discussion closed on a reflective note: Europe does not necessarily need an SEC-style single supervisor, but harmonization, interoperability, and high-quality data remain non-negotiable.
Every theme crypto integration, T+1 adoption, consolidated data, or 24/7 access points to one conclusion: technology and regulation must evolve hand in hand to shape the future of trading.
As one panelist summarized:
“Each of these topics may feel like a bouquet of flowers different, colorful, sometimes overwhelming. But together, they will define the future of our markets.”