17 August 2017
visit www.avoka.com

Blockchain could upend post-trade infrastructure - BNP Paribas analyst

06 July 2015  |  11641 views  |  0 studying graphs

A distributed blockchain system has the potential to completely upend post-trade infrastructure, leaving many current market players redundant, according to a BNP Paribas analyst.

Writing for the French bank's Quintessence publication, BNP Paribas Securities Services research analyst Johann Palychata says that there are two potential outcomes if distributed ledger technology is integrated into the post-trade infrastructure.

The first is "total disruption" thanks to a blockchain system that allows all market participants direct access to the Decentralised Securities Depositary, to the exchange and to the post-trade infrastructure of clearing and settlement.

This could leave industry players redundant, says Palychata, although he speculates that the problem of keeping private keys of account s safe means that investors could decide to entrust an authority to look after them.

A second, less spectacular scenario could see blockchain tech integrated into the post-trade ecosystem, with custodians or settlement infrastructures using it to record the ownership and trades between themselves, but requiring investors to use a custodian to have access to the market.

In this world, the ledger will only be accessible to authorised market participants. Existing actors will remain in charge, although "their level of service could change and they may deploy new services that they could not in the past because the investments required were a huge barrier to entry".

Comments: (0)

Comment on this story (membership required)

Finextra news in your inbox

For Finextra's free daily newsletter, breaking news flashes and weekly jobs board: sign up now

Related stories

Citi builds blockchains

Citi builds blockchains

02 July 2015  |  10978 views  |  2 comments | 24 tweets | 12 linkedin
Nasdaq calls in Chain for blockchain project

Nasdaq calls in Chain for blockchain project

24 June 2015  |  5278 views  |  0 comments | 10 tweets | 6 linkedin
Barclays bets on blockchain and startups to re-invent finance

Barclays bets on blockchain and startups to re-invent finance

22 June 2015  |  20649 views  |  0 comments | 40 tweets | 16 linkedin
Blockchain-based financial contract platform Mirror secures $8.8m

Blockchain-based financial contract platform Mirror secures $8.8m

03 June 2015  |  6069 views  |  0 comments | 11 tweets | 3 linkedin
UBS to investigate blockchain technology in new London innovation lab

UBS to investigate blockchain technology in new London innovation lab

02 April 2015  |  23933 views  |  0 comments | 36 tweets | 20 linkedin
BNP Paribas: The five ways Bitcoin can shake up the financial services world

BNP Paribas: The five ways Bitcoin can shake up the financial services world

12 November 2014  |  33791 views  |  2 comments | 43 tweets | 29 linkedin
Finextra Leadership: Life at L'Atelier BNP Paribas

Finextra Leadership: Life at L'Atelier BNP Paribas

27 June 2014  |  9006 views  |  0 comments | 5 tweets | 6 linkedin

Related company news

 

Related blogs

Create a blog about this story (membership required)
visit www.worldpaymentsreport.comvisit www.niceactimize.comdownload the paper now

Top topics

Most viewed Most shared
Coinbase raises $100mCoinbase raises $100m
10313 views comments | 14 tweets | 14 linkedin
DBS Bank launches online car selling marketplaceDBS Bank launches online car selling marke...
9686 views comments | 13 tweets | 11 linkedin
China preps central clearing house for mobile payments providersChina preps central clearing house for mob...
9559 views comments | 8 tweets | 15 linkedin
HSBC automates documentary trade processing with IBMHSBC automates documentary trade processin...
8515 views comments | 6 tweets | 21 linkedin
Monzo appoints Curve co-founder Foster-Carter COOMonzo appoints Curve co-founder Foster-Car...
7992 views comments | 1 tweets | 2 linkedin