Finextra: Esma expresses case for and against distributed ledgers in post-trade markets

The potential benefits of the application of distributed ledger technologies in the securities markets sit squarely in the post-trade environment, according to initial research findings from Esma (European Securities and Markets Authority) following a year-long review of the technology.

Speaking earlier this week at a conference organised by the Bank of England and London Business School, Esma executive director Verena Ross said: “We have found that clearing and settlement, collateral management, record of ownership and securities servicing are the areas where the technology is most likely to bring useful changes. It does so through the provision of a unique reference database, instantaneous reconciliation across all participants, immutable shared records and transparent real-time data.”
Esma first issued a ‘call for evidence’ on potential uses of distributed ledger technology in April 2015. While the responses showed a clear consenus that the technology has many possible applications across the lifecycle of the investment chain, Esma also see a number of limitations.
The full speech is available here:

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