The future of post-trade financial market infrastructures is visible now
Post-trade was an early target of the blockchain revolution. Yet progress has proved to be arduous, with legacy technologies, regulatory uncertainty and the protectionism of incumbents making it hard for even successful proofs of concept and pilots to grow into scalable innovations. Signs are now more encouraging, with blockchain-based investments poised to disrupt the securities and money markets from the front office to the back over the next few years. The Corda technology created by R3, which has concentrated since its foundation in 2014 on providing private, scalable distributed ledger technology (DLT) platforms to regulated financial institutions active in regulated financial industries, is behind many of the most promising projects in the capital markets. Corda supports a medley of established firms and start-ups using DLT to reinvent the issuance, trading, settlement, custody and servicing of equity and debt securities and money market instruments. Dominic Hobson, co-founder of Future of Finance, spoke to Goncalo Lima, capital markets eco-system lead at R3, about what post-trade infrastructure is now evolving into.