Derivatives-dtcc on track for Q1 2018 blockchain CDS reporting

"Such an offering could only be designed for one type of investor: those who, like GSO, have bought insurance against a default notes Sridhar Natarajan of Bloomberg News. Although the CDS market is nowhere near as large as other derivatives such as foreign exchange and interest rate swaps, it has attracted more than its proportional share of scrutiny and criticism. One well-known use is that it allows people to bet against a company's bonds: Actually short-selling bonds can be difficult, because you have to find and borrow the bonds, but it's easier to just find a bank that will write you a CDS contract and. Wed like to treat fintech the same way the government treated the internet and firstly do no harm, said Michael Gill, chief of staff at the cftc, speaking at the Lisbon event. Just over a decade ago in the credit-swap market, for example, backlogs of up to 17 days worth of trading built up before the market became electronic.

Blockchain and credit default swaps - Part 1, an overview - fintechblue

Through use of DLT, all TIWs customers could have an exact replica of the golden copy of record kept at TIW. By Snufkin via StockSnap, as we saw in the previous entry in this series, credit default swaps are ideal for blockchain testing because: theyre complex yet with a programmable structure; theyre increasingly standardised following recent changes in regulation; and they operate in a self-contained market.

Blockchain and credit default swaps, Part 2 - the application

Payments would continue to move on traditional rails. By my casual math those bonds should trade for less than 30 cents on the dollar, giving a package worth maybe 35 cents on the dollar, which seems low given that those existing bonds trade at something like 103 cents on the dollar. Greece's sovereign default, where the bondholders could be forced to exchange, this possibility created some moments of serious worry.

Dtcc to Launch Blockchain Credit Default Swaps Reporting

Since then it has acquired or created further subsidiaries to extend its services to include pan-European equities clearing, fixed income transaction processing, information management for trading institutions among other functions. Its a pleasure to be part of such a tremendous step forward, stated Axoni CEO Greg Schvey, The participants in this project can catalyze true progress in this space, having consistently demonstrated the motivation and technical sophistication necessary to tackle the speed, scale, and complexity. Participation will be optional, and participants will adapt their internal processes gradually, with large firms implementing their own nodes on the ledger while smaller ones hook in via the dtccs node. The digital ledger platform will initially launch in shadow mode, operating alongside existing infrastructure. This is likely to see a substantial shift in the short term.

Dtcc to create golden copy for CDS with blockchain - Global

The first of its kind initiative demonstrated that the complex events inherent to CDS, including payments, amendments, novations and compressions, can be efficiently managed on a blockchain in a permissioned, distributed, peer-to-peer network. The largest project currently underway not only in credit derivatives but also in the financial industry as a whole is that of the Depositary Trust and Clearing Corporation (dtcc) in the US, which is working on rebuilding its credit default swaps processing platform with blockchain.