Team Blitz India
NEW DELHI: Global financial market infrastructure companies (FMIs) are anticipated to maintain robust financial performance in 2024, according to Fitch Ratings.
The neutral outlook is driven by resilient business models, an increasing share of recurring non-volume revenue, and the overall adaptability of FMIs to market fluctuations.
Key insights indicate global exchanges will thrive on diversification into non-trading domains such as data and analytics, along with strong derivative trading volumes and a predicted modest rebound in IPOs in 2024.
Clearing houses are anticipated to face heightened counterparty credit risks in 2024, influenced by macroeconomic pressures on counterparty credit profiles.
However, this is expected to be mitigated by prudent margining practices and strengthened default waterfalls defining the priority of financial resources in case of a clearing member’s default.
Regulatory advancements, including margining requirements and capitalization, will further support the credit profiles of clearing houses.
