Distributed ledger technology for securities clearing and settlement: benefits, risks, and regulatory implications
(2018) , 39 pages
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- Abstract
- This article outlines the benefits and risks of the distributed ledger technology (DLT) for the clearing and settlement phase of the trade life cycle and describes its potential role for central counterparties and central securities depositories. Although the industry is attempting to solve the technological and operational issues that DLT systems still face, such as the harmonization of technical standards, outstanding legal risks are such that the financial industry is asking for regulatory guidance and intervention. This article wants to contribute to the debate whether to regulate DLT by first presenting potential regulatory barriers that may have to be removed for this technology to be fully adopted and then identifying areas requiring an update of the legal framework in order to address certain prudential and conduct risks that this technology could introduce.
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Citations
Randy Priem. (2018). Distributed ledger technology for securities clearing and settlement: benefits, risks, and regulatory implications. https://hdl.handle.net/2078.5/173991