PLACE FINANCIÈRE & MARCHÉS — Marchés financiers

Michael Fox (Head of Securities Services)

“Luxembourg has been built upon the foundations of innovation and stability”

Michael Fox, head of securities services of J.P. Morgan Bank Luxembourg. (Photo: DR)

Michael Fox, head of securities services of J.P. Morgan Bank Luxembourg. (Photo: DR)

As part of the 10x6 Luxembourg – Financial centre 2030 organised by the Paperjam + Delano Club on Tuesday 25 January, Michael Fox, head of securities services of J.P. Morgan Bank Luxembourg , shares his perspective on the future of our financial centre.

The financial centre is one of the central strengths of the Grand Duchy. How is it doing today? 

Michael Fox. – “Not only has Luxembourg withstood the recent global challenges, it has strengthened and flourished through those events. Luxembourg has looked to understand the demand for the future and, through close and effective consultation with all market participants, how it needs to adapt to maintain and attract those future capital flows. We’ve seen continued growth in international market participants and international banks as well as supporting opportunities to extend access to private assets – private credit, infrastructure. There’s also been significant development in the promotion of European sustainable finance goals with the introduction of Luxflag, Green Exchange, and a tax policy to promote ESG investment. Luxembourg is not only positioned for success today, but it’s also securing its success in the future.  

Does the development of blockchain, crypto-currencies, NFTs represent threats or opportunities for the financial centre? 

“Blockchain technology can revolutionise how we execute our business and deliver yet unimagined services, while extracting more value from existing resources. There’s the opportunity to create securitisation and tokenisation of physical assets, providing greater access to such asset classes while reducing transaction costs. Clearly, there remain challenges in terms of the increased complexity and risks associated with emerging technologies, which also represent a material change in the concept of traditional asset safekeeping that we see today. Further legal and regulatory guidance is required to provide legal certainty to market participants to create an attractive ecosystem for new technologies like blockchain, crypto and NFTs.

To guarantee the competitiveness and sustainability of the financial industry in Luxembourg, what do you think should be the main actions to be taken in 2022?

“Luxembourg has been built upon the foundations of innovation, stability and expertise. To remain competitive while taking advantage of new opportunities, the regulatory environment should continue to be measured and proportionate, enabling global companies to continue to operate global centres of excellence, thereby meeting global client needs while reducing operating costs. Luxembourg should also continue to provide incentives for firms involved in R&D, e.g. fintech, pharma, while developing an infrastructure plan that will promote expansion and meet population growth. That will support the specialised and skilled workforce that will strengthen the Grand Duchy’s cross-border expertise.”

Register to the 10×6 Luxembourg – Financial Centre 2030.