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[ I N - D E P T H with replacing or augmenting more expensive SWIFT messaging.” Furthermore, there is a likelihood of continued external costs. “Be- cause blockchain is based on open source, it can be less expensive,” says Monica Summerville, senior analyst at Tabb Group. “However, a lack of in-house expertise raises risks as the entity is more reliant on its outside providers, whether these are suppliers or consultants.” EuroCCP, the European equities clearing house, is currently looking at new approaches to solving post- trade inefficiencies with the use of DLT. Diana Chan, chief executive at EuroCCP, says the cost of DLT is likely to be similar to other tech- nology integration. “Our experience is that it is neither costlier nor cheaper than any other integration,” she says. “We have a modern development environment and blockchain ser- vices can be integrated in the same environment that we use for our regular IT development.” The company is still in the early stages of blockchain analysis but, says Chan, the hype around DLT has spurred FinTech innovation and is worth looking at. In future, she believes that DLT could be used to solve current post-trade inefficiencies, such as improving the collateral transfer process. “One area in which blockchain seems promising is voting rights and annual general meetings—as it is a well-defined problem with limited automation today, there is a potential business case to apply blockchain to these processes,” says Chan. “It will be interest- ing to see how this solution will evolve. With regards to post-trade processes the same applies, if there is a problem to solve and a business case for it, blockchain might be the solution.” | B L O C K C H A I N ] Where will blockchain be disruptive first? INVESTORS Clearing & Settlement Cross Border Payments Mobile Payments Trust & Custody 43% 25% 16% 16% INVESTORS SAY 16% 43% 16% 25% INDUSTRY Clearing & Settlement 39% Cross Border Payments 21% Mobile Payments 32% Trust & Custody 8% INDUSTRY THINKS 8% 39% 32% 21% Clearing & settlement Mobile payments Cross border payments Trust & custody Source: Autonomous, “Blockchain - Back-Office Blockbuster” October, 2016 Issue 56 // // 33