[ A U S T R A L I A
efficiencies delivered by the current model, she adds.
ASX’s trailblazing venture appears to be more relevant
to help larger clearing intermediaries looking to stream-
line post-trade processing right now, if not all the way
to settlement. Kandula says that progress is likely to be
incremental and will apply to bits and pieces of post-trade
processing starting “two-plus years from now” taking at
least five years and more to be ubiquitous.
Full blockchain implementation is perhaps more perti-
nent for those with ageing or legacy clearing and settle-
ment technology.
“It especially makes sense where the current infrastruc-
ture reaches obsolescence or in areas that lack market
infrastructure,” says Palychata. “For instance, we are also
investigating use cases for derivative contracts or non-list-
ed instruments that do not benefit today from the same
S P E C I A L ]
level of automation than listed products.”
As with any new hyped technology, there is also the fur-
ther challenge of harmonisation with regulatory standards.
“It’s unlikely blockchain will completely decentralise
clearing and settlement in the near future, as there are
many political, legal and structural issues to address,”
says Summerville. “But what I do expect to see is more
centralised structures applying DLT technology. Eventually,
I imagine that as DLT technology evolves and is used more
widely in other industries, the market will become more
comfortable with the concept of decentralisation, and with
some current DLT technology issues addressed, the clear-
ing and settlement will eventually be seen as essentially
redundant.”
The future of clearing is open to infinite possibilities but
it will require patience to get there.
Where will blockchain be disruptive
first?
INDUSTRY
INVESTORS
Clearing & Settlement
Cross Border Payments
Mobile Payments
Trust & Custody
Clearing & Settlement 39%
Cross Border Payments 21%
Mobile Payments
32%
Trust & Custody
8%
43%
25%
16%
16%
INVESTORS SAY
INDUSTRY THINKS
Clearing & settlement
43%
16%
25%
Cross border payments
8%
16%
Mobile payments
39%
32%
Trust & custody
Source: Autonomous, “Blockchain
21%
- Back-Office Blockbuster” October,
2016
Fall 2018
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