Trusted third parties, such as Exchanges, Brokers, Dealers and Central Securities Depositories (CSDs) that operate in the trade to the post-trade environments. CSDs are a joint market initiative to electronically settle high volumes of dematerialised shares for a national market (country or region) and maintain a central register of ownership. D
Published in Chapter:
A Securities Settlement Model Using Blockchain Technology for Central Securities Depository
Andre P. Calitz (Nelson Mandela University, South Africa), Jean H. Greyling (Nelson Mandela University, South Africa), and Steve Everett (Nelson Mandela University, South Africa)
Copyright: © 2021
|Pages: 39
DOI: 10.4018/978-1-7998-6650-3.ch008
Abstract
Post-trade securities settlements entered the electronic age between 1980 and 2000. The introduction of technologies such as secure electronic messaging, and improvements in database technology, enabled the inception of central securities depositories (CSDs) as trusted third parties or intermediaries within the securities settlements post-trade landscape. The study reported in this chapter has a focus on CSDs and the application of the blockchain technology to securities settlements. The objective is to develop a model for securities settlements using blockchain technology for a CSD, as currently, globally, no CSD has introduced a production-ready blockchain-based solution for securities settlements. A conceptual model was created from the reported literature that was evaluated by international post-trade securities professionals. The findings have resulted in the acceptance of the main components of the model, with a focus on the cost of the solution, and with the identification of prerequisites to such a solution (e.g., legal/regulatory enablement).