Financial Market Connectivity

Definition ∞ Financial market connectivity refers to the technological and operational links that enable different financial systems and participants to interact and exchange data. This includes interfaces for trading, settlement, and information sharing across various platforms. Robust connectivity is essential for efficient market functioning, liquidity, and global financial integration. It reduces friction in cross-border transactions.
Context ∞ Distributed ledger technology holds substantial promise for enhancing financial market connectivity by providing a shared, immutable record of transactions among participants. Efforts are underway to standardize protocols and interoperability solutions to fully capitalize on these benefits. This ongoing work aims to reduce settlement times and operational costs across the global financial system.