According to Cunliffe, it is critical to ensure that trading and settlement innovations are as solid in the eyes of regulators as the present system is, Reuters reported on September 28.
He went on to say that having cash and securities on hand at the time a deal is executed is required for a quick settlement. It was unknown how blockchain-based platforms and existing technologies would interact. Cunliffe said at a conference held by financial industry body AFME:
“There is simply no time to identify or rectify errors before they are actioned. In short, we may not want wholly instantaneous trading and settlement in all markets.”
Stock and bond transactions are currently paid two business days following the transaction. As a result, banks face hazardous exposures and the likelihood of major market swings in the interim, which must be covered by funds for margin and capital.
As a result, the US has set March 2024 as the target date for reducing this to one working day, and Europe is under pressure to do the same.
Meanwhile, pilot programs are in place to evaluate the use of distributed ledger technology, or blockchain, for speedy trading and transaction settlement, with the objective of lowering costs and risks.
It’s also worth noting that Cunliffe earlier cautioned that the rapid expansion of cryptocurrencies might represent a severe danger to the existing financial system, and the Bank of England likewise rejected using the digital pound as payment in July.
DISCLAIMER: The Information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
Join us to keep track of news: https://linktr.ee/coincu
Website: coincu.com
Harold
CoinCu News
Will Bitcoin Crash?" seems to be one of the most controversial questions, as the price…
There’s always that one coin people wish they hadn’t overlooked. For many, Cosmos ($ATOM) is…
Cosmos Developer Interchain Foundation sold 3000 ETH from its ICO today, totaling 21,600 ETH sold…
George Town, Grand Cayman, 22nd November 2024, Chainwire
Inflation Warning by Vanguard highlights risks during Trump’s term, citing tariffs and tighter labor markets…
Clanker token trading volume hit $59.8M on Nov 21, accounting for 14.75% of PumpFun. Fee…
This website uses cookies.