2018-6-20 13:23 |
A group of industry stakeholders has developed a blockchain platform to transfer collateral to central counterparties when trading securities.
Stock exchange operator Nasdaq announced Tuesday that its clearing arm, along with securities services provider ABN AMRO Clearing and financial services firms EuroCCP and Euroclear, have developed a joint proof-of-concept (PoC) blockchain platform.
Further, Euroclear, one of the world’s largest settlement houses, processed the underlying collateral transfers, ensuring the settlement was final and monitoring regulatory compliance.
In particular, these firms need to cover margin calls despite operating in different time zones.
The innovative development using the PoC would allow market participants “to handle the margin call, the securities collateral delivery and the return process within minutes.
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