LSE, CME and Major Banks Reportedly Form 'Blockchain Settlement Group'
- Big names are joining forces to form a 'Blockchain Settlement Group' that would explore how blockchain can streamline post-trade processes.
Big names including London Stock Exchange (LSE), LCH.Clearnet, Societe Generale, CME Group, UBS and Euroclear are reportedly joining forces to form a 'Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term Settlement Group' that would explore how blockchain technology can streamline post-trade processes.
The group, according to a Financial News report citing people familiar with the initiative, is appointing a steering committee and currently working under the name 'Post Trade Distributed Ledger Working Group'.
Bitcoin's blockchain and analogous systems inspired by it are envisioned to transform the way securities and Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term are settled, as well as for a plethora of other applications.
LSE reportedly hosted the first meeting. A spokesman reportedly said that LSE believes blockchain can potentially drive change across the capital markets industry in “in pre- and post-trade”, especially in risk management.
“We believe that driving innovation and developing new products using this exciting new technology will significantly reduce risk and margin requirements while delivering the opportunity for deeper regulatory oversight,” he said.
Working collaboratively with the various players in the industry is key, he explained, hence the formation of the group. “Our view is the technology needs to be developed in a considered and rigorous manner, in partnership with clients, to provide the right service and benefit to them. Given our long experience in post-trade, our group has significant technical expertise to bring to the discussion."
The formation is analogous to the recently announced FIX Trading Community's Digital Currency and Blockchain Working Group formed on the other side of the Atlantic, though LSE-led group is of a whole new magnitude.
CME is already involved in the FIX working group. From the LSE group, UBS has already been highly active in its exploration of blockchain technology, and Societe Generale joined a startup-led consortium of banks looking to standardize it.
Big names including London Stock Exchange (LSE), LCH.Clearnet, Societe Generale, CME Group, UBS and Euroclear are reportedly joining forces to form a 'Blockchain Blockchain Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Blockchain comprises a digital network of blocks with a comprehensive ledger of transactions made in a cryptocurrency such as Bitcoin or other altcoins.One of the signature features of blockchain is that it is maintained across more than one computer. The ledger can be public or private (permissioned.) In this sense, blockchain is immune to the manipulation of data making it not only open but verifiable. Because a blockchain is stored across a network of computers, it is very difficult to tampe Read this Term Settlement Group' that would explore how blockchain technology can streamline post-trade processes.
The group, according to a Financial News report citing people familiar with the initiative, is appointing a steering committee and currently working under the name 'Post Trade Distributed Ledger Working Group'.
Bitcoin's blockchain and analogous systems inspired by it are envisioned to transform the way securities and Payments Payments One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl One of the bases of mediums of exchange in the modern world, a payment constitutes the transfer of a legal currency or equivalent from one party in exchange for goods or services to another entity. The payments industry has become a fixture of modern commerce, though the players involved and means of exchange have dramatically shifted over time.In particular, a party making a payment is referred to as a payer, with the payee reflecting the individual or entity receiving the payment. Most commonl Read this Term are settled, as well as for a plethora of other applications.
LSE reportedly hosted the first meeting. A spokesman reportedly said that LSE believes blockchain can potentially drive change across the capital markets industry in “in pre- and post-trade”, especially in risk management.
“We believe that driving innovation and developing new products using this exciting new technology will significantly reduce risk and margin requirements while delivering the opportunity for deeper regulatory oversight,” he said.
Working collaboratively with the various players in the industry is key, he explained, hence the formation of the group. “Our view is the technology needs to be developed in a considered and rigorous manner, in partnership with clients, to provide the right service and benefit to them. Given our long experience in post-trade, our group has significant technical expertise to bring to the discussion."
The formation is analogous to the recently announced FIX Trading Community's Digital Currency and Blockchain Working Group formed on the other side of the Atlantic, though LSE-led group is of a whole new magnitude.
CME is already involved in the FIX working group. From the LSE group, UBS has already been highly active in its exploration of blockchain technology, and Societe Generale joined a startup-led consortium of banks looking to standardize it.