Process and procedure limitations have prevented centralized clearing and settlement market infrastructure providers from further reducing clearing and settlement times. Anything less than real-time clearing and settlement permits market risk and incurs margin requirements expense. Real-time gross settlement is presently possible but would require transaction-specific funding introducing liquidity and risk concerns avoided with multilateral netting.
Goals and Objectives
Reduce uncompensated risk and expense by encouraging coordinated industry investment in modernized clearing and settlement infrastructure across asset classes and trading ecosystems.
Blockchain, smart contracts, cloud, and artificial intelligence
Use Case Summary
Process and procedure limitations that are currently affecting clearing and settlement times can be resolved. Eliminate market risk and margin cost through the application of automation, authentication, and distributed ledger technologies.