FIA – DLT for derivatives? It’s already happening

While it’s early in the roll-out of many blockchain use cases, there are immediate opportunities for the use of distributed ledger technology in the derivatives markets. Near the top of this list is the management and settlement of collateral, a multi-billion dollar headache for the world’s largest banks. The root cause: the frequent need to overly pre-fund margin requirements for the positions that banks hold at clearinghouses and at custody banks on behalf of themselves and their clients. Read more…