Blockchain Technology Will Profoundly Change the Derivatives Industry
As the hype and pessimism around blockchain technology converge toward reality over the next several years, one certainty emerging among Wall Street and Main Street traders is that advancements in platform technology will profoundly change how commonly used securities known as derivative contracts will be traded. The distributed ledgers inconceivable....
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Bitcoin could change derivatives, in particular settlement, trading and securities issuance according to some individuals, among whom are bankers and technologists. Alex Batlin, who has been a vocal supporter of banks adopting Bitcoin related technologies, told attendees of the IDX Derivatives Expo in London that blockchain technologies will change banking. "Blockchain technologies can make banks more efficient - for example through instantaneous settlement rather than the days it takes at present, lower costs and lower operational risk," according to Alex Batlin, chief technology officer....
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Now that blockchain technology has been gaining more traction in terms of its practical applications, many experts have already commented on how it could transform the financial industry. Former JPMorgan executive Blythe Masters, who is now the CEO of blockchain technology firm Digital Asset Holdings, said that this could be used to help financial services institutions improve customer service. Masters also said that the first major application of blockchain could be in post-trade processing rather than payments, which has been mostly the realm of the cryptocurrency bitcoin. She added that....
As the crypto derivatives industry begins to take off, it needs to avoid the lack of transparency that plagued the industry in the 2000s, when the financial system collapsed.