November 30, 2015
Reference data is either the root of all evil or the fountain of all good. My experience is that this is an 80:20 in the devil’s favour. Standing Settlement Instructions, SSI’s, are the subject of this week’s thoughts with inspiration coming from actual market experience where things really did not go according to plan. With […]
November 15, 2015
Last week’s post looked at Payment vs. Payment. This week, Delivery vs. Payment or DvP, the exchange of securities vs. payment. #3 Delivery vs. Payment (DvP) Securities settlement today falls into one of three methods; i) via an ICSD, an International Central Securities Depository, for example Euroclear, Clearstream or SIX, ii) a CSD, a domestic […]
November 8, 2015
Last week’s post looked at Payments. This week, Payment vs. Payment or PvP. This is when one currency can be exchanged for another; this is an essential ingredient for the settlement of FX trades. Delivery vs. Payment for securities will be next week’s topic. #2 Payment vs. Payment (PvP) FX is the biggest global market […]
October 25, 2015
Why bother? Why do we need to have the central banks act as an agent to translate fiat currency balances into Blockchain platform ones? In last week’s post, I promised to offer some arguments for that. Just assume for the purposes of this post, that one or more central banks would be willing to perform […]
October 18, 2015
“Money is essential for Blockchain to do wonderful things”. I hope that those readers who have been following the posts agree with that. This week’s post will focus on three must do things or rules for moving money into a Blockchain platform. #1 The Central Banks has to be the transfer agent for its currency […]
October 4, 2015
Adding money to the Blockchain is the single ingredient needed to realise the potential of this new technology. How to make that happen is the subject of this week’s post. In various previous posts, I have covered the shortcomings of Bitcoin and also pointed out how unhelpful it would be if there were multiple Blockchain […]
September 21, 2015
A conclusion. The missing ingredient in the use of the Blockchain will be revealed, or at least my view. That is the goal for this week’s post. For sure, I do not have a fully formed solution. that said, I think I have enough of a view to have an opinion. Any and all feedback […]
September 15, 2015
A recent Bloomberg article has caused a ripple or two. Two big name items have collided to cause this effect: the Blockchain and the involvement of industry maven, Blythe Masters, who as a young hot shot at JP Morgan invented the CDS product. The article is a must read and with it, the following pinch […]
August 23, 2015
This week follows from the previous post, which looked at how moving securities balances from one platform to another was not a totally new idea. Building on that, I would like to illustrate how Distributed Ledger Technology (DLT) might work in securities settlement. A little accounting example is a necessary evil ingredient in helping develop […]
August 9, 2015
This week, I would like to take a closer look at the underlying platform; Blockchain or to be more precise Distributed Ledger Technology (DLT). There are two pillars of note that underpin the idea of DLT: firstly, the idea that each participant in the system keeps a copy of the entire balance sheet and ledger […]