7 Wall Street Firms Test Blockchain for Credit Default Swaps
Seven firms representing various stakeholders in the credit default swaps trading process today announced they successfully tested replicating the process using blockchain technology. The announcement is the latest that signals an acceleration of the rate at which financial incumbents are embracing both blockchain technology and distributed ledgers. In a statement, Chris Childs, CEO of the Depository Trust & Clearing Corporation’s (DTCC) OTC derivatives segment, said the test’s diverse group of partners was fundamental to its success. Childs said: "Blockchain and distributed....
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Seven Wall Street firms including four global banks have announced the successful testing of blockchain technology used for credit default swaps’ trading process in post-trade lifecycle events, a market wherein outstanding contracts amount to in the trillions of dollars. In a new initiative that further underlines the financial industry’s determined foray into embracing blockchain technology, seven Wall Street firms have announced the successful test of blockchain technology used for credit default swaps (CDS). Credit-default swaps are fundamentally insurance contracts which are paid off....
The Depository Trust & Clearing Corporation (DTCC) has announced its plans to utilize Blockchain technology to facilitate credit default swaps in collaboration with IBM, Axoni and R3CEV. Axoni and the R3 consortium are competitors within the Blockchain industry and are both backed by multi-bln dollar banks and financial institutions. Axoni, in particular, garnered the interests of Goldman Sachs and JPMorgan in December of 2016, raising $18 mln from other organizations such as Wells Fargo and ICAP. The two startups will lead the development of the DTCC’s credit default swaps processing....
In this episode of "Fed Watch," Greg Foss discussed credit default swaps, central banks and the futures of debt and bitcoin.
The correlation between blockchain technology and the financial industry is hard to overlook these days. A few weeks ago, several firms – including Axoni – tested the blockchain as a way to use smart contracts for single name credit default swaps. As it turns out, distributed ledgers are far more efficient than most financial players assumed. Axoni And Others Focus on Blockchain-based CDS. Established financial players have taken a vested interest in distributed ledgers to improve their own day-to-day operations. Four of the world’s biggest institutions – Bank of America, Citi, JP Morgan,....
Credit those who are trying to bring the transparency and security of the block chain to the chaotic financial markets. They recognize the need for a reliable mechanism to prevent the type of disaster visited upon the credit default swaps (CDS) market this past weekend. A cadre of financial institutions agreed in principle to a $1.87 billion settlement for allegedly conspiring to muzzle competition in the CDS market. The complete story behind this record settlement could take years to unravel. U. S. and European regulators are still investigating. In the meantime, the growing chorus of....