Guest blog: Building the next generation of market infrastructure

John Zecca
Chief Legal, Risk & Regulatory Officer, Nasdaq

On 22 September, Nasdaq and TheCityUK co-hosted a dinner in London bringing together senior leaders from across banking, capital markets, regulation and policy. The theme, "Markets in Transition: Technological Transformation and Global Connectivity", could hardly have been more timely. Capital markets are seeing the most significant period of change in a generation, with technological innovation generating excitement as well as caution and uncertainty.

The conversation reflected a wider industry mood. Nikhil Rathi, Chief Executive of the FCA, argued that the UK must move from experimentation to adoption, creating the conditions for tokenisation and other emerging technologies to scale safely in wholesale markets. His call for "agile and reform-minded" regulation, enabling innovation while maintaining market integrity, resilience and investor protection, is widely shared across the market.

There is broad confidence that the UK starts from a position of strength. The rule of law, sophisticated market infrastructure, and a trusted legal position for cross-jurisdictional securities, collateral, fixed income and repo arrangements give the UK a genuine competitive edge. English law also remains central to global markets. But these advantages must be matched by faster implementation and coherent reform.

On tokenisation, consensus is that it will improve post-trade efficiency and widen access. Regulatory treatment should remain anchored in underlying assets, not the technology applied. Nasdaq’s experience reinforces the case for moving from experimentation to implementation. The technology is ready and the necessary infrastructure can be built. The critical question is whether regulatory frameworks can evolve quickly enough to bring innovation safely within the regulated market. Tokenisation should deliver not only greater efficiency, but also the surveillance, resilience and investor protections associated with trusted public markets. The same economic activity should be subject to consistent regulatory expectations, irrespective of the technology through which it is delivered. Creating exemptions or parallel regulatory tracks for different technological forms of the same product risks fragmenting liquidity, weakening investor protection and encouraging activity to migrate towards the lightest oversight. Innovation and investor protection should therefore be understood not as competing objectives, but as mutually reinforcing parts of the same project.

There is wide support for international cooperation and coordination, particularly for the UK-US Transatlantic Taskforce and for closer alignment between the UK, US and EU. As Nikhil noted, the future ecosystem will combine traditional and on-chain infrastructure, and interoperability will be critical to avoiding fragmented liquidity. In general, the industry accepts this hybrid future; and the priority is making the pieces work together, not choosing between them.

Two further themes are rising up the agenda. First, a new generation of digitally native investors is emerging, and there is growing agreement that industry, regulators and policymakers should guide that interest towards productive investment rather than letting speculative products dominate. Second, AI offers real potential: AI-enabled guidance may be better than no advice for those outside the advice market, but the scale of mass-market abuse, and AI's potential to amplify it, should not be underestimated.

The overarching message is clear. Innovation should move beyond pilots into implementation, without compromising resilience, consumer protection or market integrity. Traditional and digital markets are likely to converge rather than one replacing the other. The UK's prospects remain strong if it builds on its legal and market strengths, coordinates reform and works with international partners. Nasdaq is committed to helping deliver that transition: modernising trusted market infrastructure, connecting traditional and tokenised markets, and supporting regulatory frameworks that deepen liquidity, strengthen investor protection and enable capital to move more efficiently across borders.

As Executive Vice President and Global Chief Legal, Risk and Regulatory Officer, John Zecca is responsible for providing legal counsel to senior management and for overseeing the quality of legal services across the global organization. John is also responsible for developing, reviewing and maintaining Nasdaq's global risk program, as well as market regulation and the Office of Corporate Secretary. John's career spans market regulation, corporate law, corporate governance and market structure. 

He previously served as Nasdaq's General Counsel North America and Chief Regulatory Officer, responsible for Nasdaq's corporate law, intellectual property and regulatory teams that maintain fair, orderly markets and protect investors. Prior to joining Nasdaq in 2001, John served as legal counsel to a commissioner of the Securities and Exchange Commission and practiced corporate securities law at both Hogan Lovells and Kaye Scholer. Before that role, he served as a law clerk for the Honorable John H. Pratt of the United States District Court for the District of Columbia. 

John received his Bachelor of Science degree from Cornell University and his Juris Doctor from the University of California, Hastings College of the Law. He is a member of the bar in the District of Columbia and California, and a licensed solicitor in England and Wales. He is based in Washington, D.C.