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[ I N - D E P T H | B L O C K C H A I N ] The Depository Trust and Clearing Corporation (DTCC) has been looking at using blockchain for specific parts of its post-trade business for some time now. DTCC announced last year that it was working to build a DLT solution for its credit derivatives post- trade processing business based on its existing Trade Information Warehouse (TIW) capabilities. The initiative, one of the industry’s largest and most complex DLT moves to date, had been expected to tor of solutions business devel- opment and the office of FinTech strategy, DLT has the potential to address the limitations of existing post-trade processes by stream- lining and simplifying the siloed design of the financial industry’s infrastructure. “There are several key features ASX's pathway for the replacement of CHESS Develop a prototype platform using DLT technology Formal gathering of business requirements for a replacement system – to perform all current core functions of CHESS, with limited introduction of new features initially January 2016 – July 2016 Commenced August 2016 “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.” MONICA SUMMERVILLE, SENIOR ANALYST, TABB GROUP. launch in early 2018. However, this has now been put back to 2019. The delay is related to increased testing and development of the project—implementation of nascent technologies cannot be rushed, by all ac- counts. Yet, despite the time extension, DTCC remains confident that the implementation of DLT should boost efficiencies. According to Jennifer Peve, DTCC managing direc- 34 // TheTrade // Summer 2018 Build out the prototype to an ‘industrial scale’ platform using DLT technology End-2017 that make this technology a poten- tially attractive option to improve existing processes, including the fact that standard rules exist for se- curities transaction validation and replication, immutable linkage to transaction history and auditabili- ty,” says Peve. But it is not a panacea. While at a conceptual level, the function of netting and clearing could be carried out using DLT, the cost and risk considerations of the ledger model need to be balanced against the existing efficiencies of current infrastructure, which for many is