Tuesday, February 19, 2019
“Hype and Reality for Blockchain and Distributed Ledger Technologies” at Institutional Securities Lenders’ Meeting
February 6, 2019 —Systems entrepreneurs - Armeet Sandhu, Sal Giglio, and Ed Blount - engaged in a lively brainstorming session with Chris Ferris, IBM’s Distinguished Engineer for Open Source Technologies, at IMN's 25th Annual International Securities Finance and Collateral Management Conference. Key take-aways from the panel discussion were:
Current private blockchains are no more complex than web servers, but creating the design and consortium is challenging;
IBM has tools to preserve confidentiality in shared ledgers while guaranteeing accountability;
Off-chain lifecycle event processing can link to the blockchain and prove to the shared ledger;
Shared ledgers can help lenders comply with the Securities Finance Transaction Repository (SFTR) mandate;
Blockchains can help track loans for principals and service providers in peer-to-peer (P2P) lending programs.
Thursday, January 10, 2019
Initial hype has ebbed and real progress is being made
The early torrent of media hyperbole about distributed ledger technologies (DLT), such as blockchain and shared ledgers, has now been supplanted by reflection on lessons learned. Scaling concerns were allayed to some degree by DTCC’s November 2018 report that its study of throughput capacity for DLT was sufficient to handle massive U.S. equity trading volumes. More positive ink came as a group of 15 global banks reportedly eased ahead from initial testing to a planned 2Q19 start date for adopting the newly re-coded $11 trillion Trade Information Warehouse at DTCC, in which IBM created a shared ledger for tracking the lifecycle events of 98% of all credit default swaps.
Monday, November 12, 2018
Regulators and Credit Derivatives industry prep for 2019 Go-live
Announced on November 6, 2018, the addition of Barclays brings to 15 the number of dealers in the main blockchain project of The Depository Trust & Clearing Corporation (DTCC). By recoding the DTCC’s Trade Information Warehouse (TIW) for bilateral credit derivatives in only 18 months, the securities depository and its team of IT consultants – IBM, Axoni and R3 – hope to show that distributed ledger technology and cloud platforms are feasible options for high volume transaction processing and recordkeeping systems -- initially for those services with similar data architectures on a permissioned platform.
Thursday, October 18, 2018
Accenture cloud model scales to 100 million trades daily in study prototype
On October 16, 2018, the Depository Trust & Clearing Corporation (DTCC) reported that “distributed ledger technology (DLT) is capable of supporting average daily trading volumes in the US equity market of more than 100 million trades per day.” Based on a cooperative study by Accenture, Digital Asset and R3, the clearing and settlement service provider said that DLT can process daily trading volume at peak rates of 6,300 trades per second for five continuous hours. Past benchmarks were based on cryptocurrency blockchains that now operate at fewer than 100 trades per second.
Friday, September 28, 2018
Bank of England hosts DLT vendors for industry review
The Bank of England's Securities Lending Committee took up the question of distributed ledger technologies (DLT) in its September 24 meeting. Three vendors were invited to present their concepts to the group of nearly two dozen UK bankers and their regulators. The presentations and the Committee members' reactions were summarized in the minutes of the meeting. Each vendor approached the market from a different perspective, using a different aspect of DLT. Members found some value in the proposed solutions, yet were generally disappointed in the market impact of the innovative approaches.