A group of major players in the financial industry has developed a blockchain platform to transfer deposited collateral to central counterparties when trading securities.
Stockbroker Nasdaq has announced that its clearing arm, together with investment services firm ABN AMRO Clearing and financial services providers EuroCCP and Euroclear, has developed a joint proof-of-concept for a blockchain platform.
According to a press release, margin calls – the need to deposit funds or securities to cover potential losses – are to be covered by a distributed network of guarantors, borrowers and intermediaries.
Nasdaq developed the proof-of-concept, while ABN AMRO clearing and EuroCCP created a front-end interface and managed integration with the services.
Euroclear, one of the largest settlement houses in the world, handled the underlying security transfers to ensure that settlement was final and to monitor compliance.
Due to the increasing number of market participants, such as hedge funds and institutional companies, an efficient securities protection solution has become even more important. These companies have to cover margin calls even though they operate in different time zones.
Using the proof-of-concept would allow market participants to “complete the margin call, collateral delivery and return process within minutes”.
image by shutterstock
TheBitcoinNews.com – Bitcoin News source since 2012
Virtual currency is not legal tender, is not backed by the government, and accounts and value balances are not subject to consumer protections. TheBitcoinNews.com holds several Cryptocurrencies, and this information does NOT constitute investment advice or an offer to invest.
Everything on this website can be seen as Advertisment and most comes from Press Releases, TheBitcoinNews.com is is not responsible for any of the content of or from external sites and feeds. Sponsored posts are always flagged as this, guest posts, guest articles and PRs are most time but NOT always flagged as this. Expert opinions and Price predictions are not supported by us and comes up from 3th part websites.
Advertise with us : Advertise