Regulatory enthusiasm for central clearing and the advent of distributed ledger technology have focused minds on the post trade system as never before. Enthusiasm for DLT is warranted but some of its more extreme supporters risk using the tools of the future to take the system into the past.
In this Greenwich Report, we:
- Outline the history of ledgers and clearing systems including early missteps.
- Describe the evolution of the existing US securities clearing system.
- Highlight the many ways in which DLT can improve the existing system.
- Discuss the practical and conceptual shortcomings of a full replacement by DLT.
