Blockchain improves settlement systems: DTCC calls on industry to work together

The Depository Trust and Clearing Corporation (DTCC), an international trade database, has released a report titled “Embracing the Disruptors: Exploring the Potential of Distributed Ledger Technology to Improve Back-end Trading Systems.”

A month ago, DTCC participated in the open source blockchain project "Open Ledger Project" led by the Linux Foundation. A number of technology and financial giants such as IBM, Intel, Cisco, London Stock Exchange Group, and JPMorgan Chase also joined the project, making the project attract widespread attention from media around the world.

In the report, DTCC mainly focused on using blockchain technology to solve efficiency issues in trading back-end management systems.

The report says blockchain technology can speed up and simplify the processes of trade and contract review, issuance of asset-backed securities, and settlement and clearing.

DTCC President迈克尔•伯德逊said:

“This is a once-in-a-generation opportunity for our industry to reimagine and accelerate the modernization of the industry’s infrastructure to address long-standing business challenges.”

The report states:

“The industry is looking to blockchain technology to improve existing processes for a number of reasons, including standard rules for confirming and replicating securities transactions, immutable transaction history, and auditability.”

The report also reminds the financial services industry that it should conduct further research before adopting blockchain technology, such as developing industry standards and analyzing whether the benefits of changing post-trade systems to use blockchain technology outweigh the costs and whether its inherent scale and performance challenges can be overcome.

Notably, the DTCC raised the question of whether blockchain technology is necessary for an industry that wants to move toward a real-time trade settlement system.

DTCC also raised the issue of the hype surrounding the blockchain concept. It believes that there is a risk that the industry will repeat past mistakes when experimenting with new technologies, and continue to build new "island-style" solutions based on different standards.

Original article: http://www.coindesk.com/dtcc-report-blockchain-hype/
By Stan Higgins
Compiled by: printemps
Source (translation): Babbitt Information (http://www.8btc.com/dtcc-blockchain)