Blockchain-based New Financial Infrastructures: Theory, Practice and Regulation

This book explores the development of blockchain-based new-generation financial infrastructures, focusing on securities trading platforms, central securities depositories, securities settlement systems, central counterparty, payment systems, and trade repositories. It proposes a blockchain-based new DR solution using Hashed Timelock Contract (HTLC) and studies how to carry out opening positions, end-of-day settlement of margin, forced liquidation, and settlement at maturity for exchange-traded derivatives. It also provides an in-depth analysis of existing specific issues in China's bond market, regional equity markets, and asset management market and proposes relevant blockchain-based solutions.

Format: Hardback
Length: 193 pages
Publication date: 09 September 2022
Publisher: Springer Verlag, Singapore

This book delves into the development of blockchain-based new-generation financial infrastructures, offering a comprehensive theoretical framework to explore various blockchain-based financial systems. It focuses on blockchain-based securities trading platforms, central securities depositories (CSDs), securities settlement systems (SSS), central counterparty (CCP), payment systems (PS), and trade repositories (TR). The blockchain-based new financial infrastructure (FMI) has garnered significant attention within the securities industry, particularly in addressing the challenges of cross-border depository receipts (DR).

In this book, the author proposes a blockchain-based new DR solution, showcasing the potential of blockchain technology in the FMI field. By utilizing Hashed Timelock Contract (HTLC) as the underlying technology, the author outlines specific processes and operations for delivery versus payment (DvP), delivery versus delivery (DvD), or payment versus payment (PvP) and other exchange-of-value methods. Furthermore, the book explores the implementation of opening positions, end-of-day settlement of margin, forced liquidation, and settlement at maturity for exchange-traded derivatives, such as futures and options, within the blockchain-based technological framework.

Blockchain technology seamlessly integrates with the decentralized or non-centralized nature of the over-the-counter (OTC) market, effectively addressing the pain points and complexities faced by these markets. This book provides an in-depth analysis of existing specific issues in China's bond market, regional equity markets, and asset management market, among other OTC markets. It proposes relevant blockchain-based solutions to address these challenges.

It is important to note that blockchain technology does not alter the public policy objectives for FMI. The blockchain-based new FMIs remain subject to compliance and regulatory requirements.

Weight: 483g
Dimension: 235 x 155 (mm)
ISBN-13: 9789811948428
Edition number: 1st ed. 2022