Speaking at the opening of the International Derivatives Expo (IDX) in London on June 17, Walt Lukken, President and CEO of the Futures Industry Association (FIA), outlined a forward-looking agenda for the global derivatives industry, centered on three strategic imperatives: standardising infrastructure, modernising collateral management, and streamlining regulation.
“In times of uncertainty, we must focus on the decisions that will positively affect our industry down the road,” Lukken said. “We have a responsibility to invest in the next generation of ideas, people, and technology.”
Lukken highlighed the critical need for infrastructure standardisation, particularly in the face of heightened volatility and record trading volumes. “Extreme volatility creates real problems for our customers and puts a tremendous amount of stress on our infrastructure,” he noted.
To address these systemic pressures, the FIA established the Derivatives Market Institute for Standards (DMIST), which developed the 30-30-30 standard. This initiative mandates that market participants allocate or accept trades within 30 minutes of execution on trade day. The goal is to prevent operational bottlenecks, particularly during periods of extreme market activity.
The standard has already delivered measurable improvements. “The highest volume day in our industry occurred in April of this year, during President Trump’s announcement on raising tariffs,” Lukken noted. “Even with this growth, misallocated trades dropped by nearly 50 percent compared to the Ukraine peak.”
While acknowledging this progress, Lukken cautioned that infrastructure weaknesses remain. “We still have an unacceptable number of trades that get snagged during normal and peak times,” he said. Looking ahead, DMIST will expand its focus to other inefficiencies, including average pricing, position transfers, self-match prevention, and standardised data templates.
“Investing in our infrastructure will take time, but it is already paying off,” he added.
Lukken then turned to the evolving challenge of collateral movement. As margin requirements rise and trading windows expand, the need for faster, more flexible payment systems has become clear. Distributed ledger technology, he argued, offers a solution.
“This technology could lead to huge improvements in collateral management and settlement,” he said. “It will make it possible to move collateral and meet margin requirements on holidays and weekends when banking systems are closed.”
Momentum is building around tokenised collateral. Exchanges and clearing houses such as CME, DTCC, Eurex, and ICE are actively exploring blockchain-based solutions. At the same time, banks and asset managers are investing in infrastructure to manage tokenised assets.
Public sector interest is also increasing. “The Bank of England, Federal Reserve, and the Monetary Authority of Singapore are all focused on this promising technology,” Lukken said.
To support these developments, the FIA recently published a white paper on tokenisation and is planning webinars, forums, and pilot projects to advance the conversation. The association is also assessing whether regulatory adjustments are needed to support wider adoption.
“We are at a turning point,” Lukken concluded. “Stay tuned—we will have more to say in the coming months.”
Finally, Lukken addressed the regulatory environment. While reaffirming the industry’s support for smart, fit-for-purpose regulation, he warned that the post-2008 regulatory buildup has introduced complexity and cost that now threaten growth.
“We are coming to the end of a regulatory super cycle that began with the Great Financial Crisis,” he said. “Some of the resulting frameworks are justified—but some are excessive and overly prescriptive.”
He cited research from FIA member Nasdaq estimating that regulatory simplification could unlock between $25 and $50 billion in efficiency gains, potentially freeing up as much as $1 trillion in lending capacity globally.
Encouragingly, regulators appear receptive to reform. “Sir Keir Starmer and his Labour Party have pushed for growth that includes streamlining regulations,” Lukken noted. “The Draghi report and EU leaders are prioritising economic productivity, and we have begun to see similar efforts in the U.S.”
FIA is working closely with members and regulators to identify burdensome requirements and explore smarter, more efficient approaches. “We can enhance productivity without adding risk to the system,” Lukken said. “This is a real opportunity to modernise without compromise.”
Lukken concluded his remarks with a call to collective responsibility. “Risk takers and innovators have brought us this far. Now it’s our turn,” he said. “We must be courageous. We must invest in the next generation of ideas, people and technology. The future is in our hands.”
