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Nasdaq will launch a blockchan-based platform to fulfill collateral requirements

The platform will ensure execution of collateral requirements for margin trading.

20.Jun.18 9:03 PM
By Jeff Bannister


Nasdaq will launch a blockchan-based platform to fulfill collateral requirements
The Nasdaq Exchange plans to launch a blockchan-based platform to transfer collateral to counterparties. This is reported by the publication CoinDesk. The platform is developed in cooperation with ABN AMRO Clearing, Euroclear and EuroCCP. The main objective of the project is to improve the interaction between intermediaries of transactions in margin trading. A pledge is necessary to cover possible losses of creditors that provide assets.

Collateral will allow meeting the requirements of financial regulators and improve the operation of the platform. Nasdaq developed a pilot model, and partners - created an interface and technical tools.

A representative of EuroCCP Diana Chan noted that the new system will be useful in solving a number of important problems. The fact is that the requirements for collateral and the process of trade have changed.

Additional trading hours were introduced, and many derivatives are traded on other platforms. At the same time, the number of market participants is constantly growing. And there are more and more big investors, who are interested in reliable transactions with securities. That is why there was a need to cover possible risks. The new platform will solve this problem.

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