Articles tagged by blockchain
Gavin Wells is the new Head of Europe of
software company, Digital Asset Holdings, the company confirms.
Wells had previously been at LCH Clearnet
(LCH), where he was global head
of ForexClear. Wells joined LCH in 2008 and led the team ...
Absa Bank (Absa), the South
African subsidiary of the Barclays Africa Group (Barclays Africa), has become
the first bank in Africa to join R3’s consortium aiming to design and apply
distributed and shared ledger-inspired technologies to global financial
R3 has announced that
it is leading a group investigating the development of master templates for
smart contracts that can be used on “blockchain-inspired” platforms.
Following the R3 Smart Contract Templates Summits in London and New York in
late June, ...
After a number of years having to take reactionary measures in
response to new regulatory requirements, panellists at Profit & Loss’ Forex Network New York conference expressed
enthusiasm for a new wave of innovation that has the potential to re-shape FX
Thomson Reuters has joined R3’s partnership to design and
apply distributed and shared ledger-inspired technologies to global financial
“Thomson Reuters will contribute insights from its work with
customers to drive product innovation and transformation in the financial
Calypso Technology has
joined the Wall Street Blockchain Alliance (WSBA) as a corporate member.
The WSBA, which is a
non-profit trade association, claims that the addition of Calypso reflects the
ever increasing need for blockchain knowledge and expertise across multiple
Digital Asset, a developer
of distributed ledger technology, has hired Carol Mathis as its chief financial officer (CFO).
Mathis joins from RBS
Corporate and Institutional Bank, where she was a managing director and chief
operating officer for the past three ...
Franck Mikulecz, managing director of the newly established clearing house FXCH, explains why
and how his firm is using distributed ledger technology to clear spot FX
Profit & Loss: You’ve launched a clearing house to clear spot FX using ...
Cobalt DL says that it
has commenced beta testing with a number of leading FX participants on its
private peer-to-peer network that uses distributed ledger technology in order to
try and reduce post-trade cost and risk.
Andy Coyne, co-founder
Symbiont, a provider of smart contracts and distributed ledgers
in financial markets, has appointed Caitlin Long as its president and chairman
of the board of directors.
In these roles Long will be responsible for commercialising
Symbiont’s blockchain technology, encompassing ...
BM&FBovespa is the latest financial services firm to join the R3 partnership that aims to design and apply distributed and shared ledger-inspired technologies to global financial markets.
The exchange group will join over 60 other financial institutions in the consortium, where it will collaborate on research, experimentation, design and engineering to help develop distributed ledger technology that meets the financial and capital markets requirements for identity, privacy, security, scalability, interoperability and integration with legacy systems.
Consortium members work closely with R3 to develop Corda, its shared ledger platform specifically designed to record, manage and synchronise financial agreements between regulated financial institutions.
R3 and Axoni, along with seven buy and sell side firms, are working to explore ways that blockchain technology can be used to simplify reference data processes.
The group, which includes Alliance Bernstein, Citi, Credit Suisse and HSBC, recently completed a multi-month proof of concept (PoC) exercise aimed at building a distributed ledger prototype that can enhance the risk management, cost and efficiency issues inherent in managing financial reference data.
The prototype was created using Axoni Core, the firm’s proprietary distributed ledger software, to simulate the collaborative management of reference data, as well as the use of that reference data for corporate bond issuance.
The technology is designed to enable participants to interact with reference data after issuance, with any proposed changes requiring validation by the underwriter to ensure the ledger provided a single, immutable record of all data related to the bond.
Along with “Blockchain” the most ubiquitous phrase in financial markets this year has been “FinTech”, which of course encompasses blockchain technology.
Venture capital (VC) money continues to pour into the space, innovation labs and accelerator programmes are sprouting up in banks across the globe and many established technology vendors within the financial services industry appear keen to adopt the FinTech label.
But is the FinTech that we’re seeing come to market now really anything new? Or is it just the continuation of an old trend that’s been given a more exciting and investor-friendly label?
CLS Group is planning to release a payment netting service, CLS Netting, for buy and sell-side institutions’ FX trades that are settled outside of its settlement service.
Firms will have the choice of connecting to the service via existing channels or by utilising Distributed Ledger Technology (DLT).
CLS claims that the global FX market is limited by the lack of a standardised payment netting process for trades not settled within CLS. The firm claims that in many cases institutions are forced to intervene manually to complete the process, leading to inconsistent and bespoke approaches to netting throughout the market, which in turn results in higher costs and increased intra-day liquidity demands.
Antony Lewis has taken a job as a director in R3 CEV’s lab and research centre in Singapore.
Prior to this new role, Lewis was working as a consultant, focused on helping financial services firms understand fintech, blockchains and distributed ledgers.
Between 2013 and 2015 he was part of a venture capital funded bitcoin startup, itBit, working as an institutional client group director.
Before that, he spent four years at Credit Suisse, working initially as an FX business analyst in London and then later as an FX technology project manager in Singapore.
FinTech, and in particular blockchain technology, is set to significantly change how banks operate, according to John Tsang, financial secretary for the Government of Hong Kong SAR.
However, speaking at a Fintech briefing in New York today, he warned that some banks are ill-prepared for the changes that will be driven by this new technology.
“Most of the bankers that I know are the people that are least prepared to deal with FinTech, they have no idea what blockchain is and blockchain is going to change their lives. They might not have a job, to put it in a more brutal way,” he said.
Visa is partnership with Chain to launch a new business-to-business (B2B) payments platform using blockchain technology.
The new platform, Visa B2B Connect, will be built using Chain Core, an enterprise blockchain infrastructure that is designed to facilitate financial transactions on scalable, private blockchain networks.
The plan is for Visa to use this technology to develop a near real-time transaction system designed for the exchange of high-value international payments between participating banks on behalf of their corporate clients.
The platform will be managed by Visa end-to-end and the firm says it will facilitate a consistent process to manage settlement through Visa’s standard practices.
Cobalt DL (Cobalt), which plans to launch distributed ledger-based FX post-trade platform in 2017, has announced a partnership with SETL to deploy its Open CSD distributed ledger within the platform.
Although a spokesperson for Cobalt declined to name a targeted go-live date for the platform next year, the firm claims that it has 15 institutional FX participants already committed to the service.
Profit & Loss previously reported on Cobalt’s plans to try and reduce post-trade costs for financial services firms by creating a shared view of trade data.
It's nice to know that P&L's managing editor is not the only one who needs to get stuff off his chest, deputy editor Galen Stops has real blockchain fatigue, and it's hard not to agree with him. Is blockchain a solution looking for a problem? Well not exactly, it's a fascinating development that is probably going to have a long and lasting impact on the financial services industry, but just for now, can't we just talk about something else until something tangible happens?
As more financial services firms look for ways to utilise blockchain technology within their infrastructures, Galen Stops examines whether the technology is really as safe as advocates claim, following two high-profile hacks earlier this year.
“Cyber and system security is one of the most important issues facing markets today in terms of integrity and financial stability,” said Commissioner Christopher Giancarlo of the Commodity Futures Trading Commission (CFTC) on September 8, when approving system safeguard requirements for derivatives clearing organisations.
Giancarlo is hardly alone in his concerns.
Calypso Technology has become the first firm to partner with R3 to develop capital markets applications on its Corda distributed ledger-based smart contract platform.
The two firms are currently developing a multi-party trade confirmation solution and testing it with multiple financial institutions.
R3’s Corda – which will be open-sourced globally on November 30 – is designed to be an open and inclusive smart contract platform that enables third party providers and partners to build and operate distributed ledger applications using common code and protocols to ensure interoperability.
David Mercer, CEO of LMAX Exchange, talks to Galen Stops, deputy editor of Profit & Loss, about why FinTechs are enablers rather than disruptors of the FX market.
The world “disruption” is often applied to FinTech firms, yet Mercer argues that in FX the role of these firms is not to disrupt but to enable the growth of the market.
“We’re trying to enable the industry to operate more efficiently and more fairly. Other people put that disruption word around companies like LMAX Exchange but the FX market is the biggest asset class in the world, it doesn’t really need disrupting, it needs to grow and it needs to be enabled to allow it to grow.
Franck Mikulecz, managing director of FXCH, talks to Galen Stops, deputy editor of Profit & Loss, about how blockchain technology can help mitigate some of the credit challenges facing the FX industry.
With blockchain, or distributed ledger technology, still being so new to financial services, Mikulecz claims that banks are still trying to figure out the most effective way to deploy this technology.
“I can see a lot of banks have an interest because they know that the market will evolve and the market will potentially be disrupted by the technology but they don’t really know how it’s going to happen and they don’t really know how to use it themselves.
The Depository Trust & Clearing Corporation (DTCC) has selected IBM, in partnership with Axoni and R3, to provide a distributed ledger technology (DLT) framework for derivatives post-trade lifecycle events.
The firms will work collaboratively to re-platform DTCC’s Trade Information Warehouse (TIW), building a derivatives distributed ledger solution for post-trade processing based on existing TIW capabilities and interfaces with technology providers and market participants.
The TIW service currently automates the record keeping, lifecycle events, and payment management for more than $11 trillion of cleared and bilateral credit derivatives.
In the interests of total transparency we also, as usual, cast our eye over last year’s predictions to see how they went. As always, these predictions will be viewed through rose-coloured spectacles to ensure we look as good as possible!
We kicked off last year’s predictions by suggesting the entire FX world would take a more realistic view of developments – that liquidity and spreads would reflect this thought process, and that market share would be a declining influence in business decisions.