An article in The Global Treasurer takes the helicopter view over what a new era in clearing and settlement may look – and how blockchain technology could help form it.
”As easily the most technical process within the trade cycle, clearing does not easily lend itself to technological innovations,” The Global Treasurer writes in its looong take on the topic of tomorrow’s securities exchange.
Spending millions, though
”But despite the challenges, clearing houses and exchanges have spent millions in overhauling antiquated legacy systems to improve overall functionality,” the news site adds, noting the recent decision by Options Clearing Corporation (OCC) to go for Swedish Cinnober’s Tradexpress Realtime clearing platform.
The overview is clearly aimed to be readable also for the non-expert, and it explains clearly for example how the differences between bilateral clearing and central clearing matter in this context.
New requirements for reporting to regulators is one driver of change.
”Different to what we know”
“We are witnessing a multiplication of reporting regimes seeking to satisfy public authorities’ needs for transparency,” said Collin Coleman, CEO of NEX Regulatory Reporting, in a report referred to by the article.
”But we are also seeing true innovation, driving efficiencies in reporting by leveraging the cloud and in the future DLT and AI technology. In combination, the reporting ecosystem is going to look very different to what we know today.”