Implementation of clearing operations on blockchain

Abstract

The purpose of this study is introduction of Blockchein's technology in clearing operations. Blockchain technology has the potential to reduce dramatically the cost of clearing and settling transactions. Securities can be issued on to a blockchain by issuers, allowing investors to purchase them directly without the intermediation of fund managers, let alone global or local brokers, custodians, CCPs or CSDs. The multiple post-trade procedures of today - the capture, matching, confirmation and affirmation of transactions - are collapsed into a single, seamless process. Instead of comparing and reconciling separate records of the same transaction, all parties to it share a single set of data, creating massive operational savings. The more asset classes on a blockchain, the greater the savings.