How does the Vice President of Growth and Innovation help create new products and ideas for clients? That’s the million dollar question, if not more.
Jacques Caussignac speaks with Michael Hainsworth about numerous factors that TMX Group considers when working on innovative ideas for clients.
These ideas stem from carrying out a tailored approach with each company. Caussignac emphasizes that no two clients are the same, which means that client needs are all about flexibility. By tailoring its objectives and goals, TMX Group has primed itself to work in a new, granular market, where technology and players come together to create numerous possibilities.
One of the major aspects to consider within the capital markets is their shift from survey-based interest rates to more reliable transaction-based rates. This change arose from the 2008 financial crisis when stock market manipulation was identified as a major cause that had devastating woes inflicted upon many companies and employees.
Over a decade later, the financial community still remembers what happened, and the global capital markets are looking at using these transaction-based interest rates, as they entail specialized trading engines that spit out real transaction interactions that are going on in the market and then have rates that reflect these transactions. This method can be used in multiple markets around the world, and is an approach that Caussignac is looking into for the future of TMX Group.
What’s more, this transaction-based approach will also have an effect on borrowing costs for corporations and derivative products, both on exchanges and in over-the-counter products.
Moving on, Caussignac explains how ESG is going to be crucial for the remainder of this year, and for the years to come. ESG refers to better environmental, social and governance management, which provides opportunities for companies to really look into their business models to see how they can improve their operations.
Next, Caussignac mentions the role of algorithms and artificial intelligence in capital markets. Although technology has advanced a lot in the last few years, humans still play an important role in decision making, risk management and in everything that surrounds algorithms talking to one another. Technology is a big help but humans are still needed to bring ease of use in adjusting risks and making sure that clients understand what they are doing and how they should be doing it.