DTCC delays blockchain post-trade platform launch to avoid Brexit complications
Mon, 07 Oct 2019, 09:39 am UTC
Post-trade financial service firm Depository Trust & Clearing Corporation (DTCC) has confirmed that it would delay the launching of its blockchain-based post-trade platform for derivatives by several months, to avoid complications with Brexit.
According to CoinDesk, the decision was made to give more time to conduct additional testing of the revamped trade information warehouse (TIW).
A company spokesperson told the news outlet that the project is progressing and that it is just making sure that the product is 100% ready when it hits the market.
“DLT and cloud development have been completed and we continue to conduct in-depth industry-wide testing with our clients, vendors and technology providers. However, to ensure that this technology is implemented in a measured, prudent and most secure manner, we have allocated additional months for testing, to ensure that firms are 100 percent ready,” as per the firm’s statement.
However, the report further cited a person with knowledge about the matter affirming that Brexit is the actual reason for the delay.
The project’s supposed initial launch reportedly coincided with the Brexit week. And assuming that Brexit happens, the country’s regulation is likely to change, including possibly releasing new policies from the Commodity Futures Trading Commission.
DTCC did not provide a specific date for the re-scheduled release.
Meanwhile, the push back follows after DTCC and Accenture revealed a distributed ledger technology (DLT) operating model to manage risks and consequences of an emerging DLT landscape. The mode, introduced in a whitepaper “Governing DLT Networks,” aims to ensure the safety of the network for the benefits of those involved and to allow DLT to attain its full potential.
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