Thomson Reuters Joins R3 Consortium

Thomson Reuters has joined R3’s partnership to design and
apply distributed and shared ledger-inspired technologies to global financial
markets.

“Thomson Reuters will contribute insights from its work with
customers to drive product innovation and transformation in the financial
sector using distributed ledger technologies,” the two companies say in a
statement.

The R3 team of “financial industry veterans, technologists
and blockchain and cryptocurrency experts collaborate with consortium members
on research, experimentation, design and engineering to help advance this
technology to meet banking requirements for identity, privacy, security,
scalability, interoperability and integration with legacy systems”, they say.

R3 recently unveiled Corda, a shared ledger platform
specifically designed to record, manage and synchronise financial agreements
between regulated financial institutions.

“It is heavily inspired by and captures the benefits of
blockchain systems, without the design choices that make blockchains
inappropriate for many banking scenarios,” they say in the statement.

Thomson Reuters’ addition brings to over 50 the number of
members in the consortium.

“We think there’s a provision for our platform to be used as
the consortium sees fit”, including “our market feeds business, intelligent
tagging and other capabilities around risk and compliance and post-trade
settlement”, Mark Rodrigues, managing director, strategic customers and
solutions at Thomson Reuters tells Profit & Loss.

“R3 creates a safe environment for trial and error, which is
particularly important for big regulated institutions, particularly ones that
are under budget constraints,” he adds.

“There are many areas where distributed ledger technology
can be useful, such as trade finance, digital identity, post-trade settlement
and clearing” and more specifically in FX markets, “linking cash markets to FX
swaps and futures”, he explains.

“In the next two years we are going to see actual commercial
applications in varying levels of maturity” coming out of the R3 project “to
solve specific problems” says R3’s managing director Charley Cooper.

Speaking of R3’s engagement with regulators, he says that a
dedicated regulatory team has so far met some 70 regulators worldwide. Some of
them area actively participating in the experimentation, such as the Bank of
Canada, which has run tests of payments to several Canadian banks that are part
of the consortium, he says.

Beatrice Bedeschi

beatrice@profit-loss.com

Twitter@Profit_and_Loss

Beatrice Bedeschi

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